Asian shares gain on solid Aussie jobs data, Shanghai up on Q1 FDI

Investing.com - Shares in Australia gained on better than expected jobs data, while Hong Kong and Shanghai rose on solid foreign direct investment figures for China in the first quarter.

The S&P/ASX 200 rose 0.66%, while the Shanghai Composite was up 1.95% and the Hang Seng index gained 0.20%.

The Nikkei 225 however eased 0.29% by the break.

Australia reported that 37,700 jobs were added month-on-month in March, more than double the 15,000 expected and that the unemployment rate dipped to 6.1%, below the expected steady 6.3%, but the participation rate edged up to 64.8% from 64.6% seen.

The data reduces slightly the odds of a Reserve Bank of Australia cash-rate cut in May.

Earlier, in Australia, the MI April inflation expectations data showed a rise to 3.4% from 3.2% in March, a surprising outcome though possibly accounting for views on a weaker Australian dollar.

Foreign direct investment into China rose 11.3% year-on-year to $34.88 billion in the first quarter.

Overnight, stocks on U.S. equities markets moved broadly higher on Wednesday, as crude oil surged to its highest level on the year creating widespread gains in the energy sector.

Stocks on the Dow Jones Industrial Average closed in the green for the fifth time in six sessions to eclipse the 18,000 level, while the NASDAQ gained more than 0.6% to return above 5,000.

The Dow Jones Industrial Average gained 75.24 or 0.42% to 18,111.94, while the NASDAQ rose 33.73 or 0.68% to 5,011.02, as it approached an all-time record-high.

The S&P 500 Composite index also edged up 10.79 or 0.51%.

On Wednesday, data showed that manufacturing conditions in the New York area contracted unexpectedly in April and that U.S. industrial production fell more than expected last month.

In a report, the Federal Reserve Bank of New York said that its general business conditions index decreased to -1.2 this month from a reading of 6.9 in March. Analysts had expected the index to inch up to 7.0 in April.

Data also showed that U.S. industrial production declined 0.6% last month, worse than expectations for a drop of 0.3%. Industrial production rose by 0.1% in February.

Meanwhile, manufacturing production inched up 0.1% in March, in line with forecasts and following a drop of 0.2% in February.

The euro pared losses after European Central Bank President Mario Draghi played down speculation that recent signs of a recovery in the euro zone economy could see the bank scale back its buying program.

Investors are also anticipating a collapse in negotiations between Greece and its euro zone creditors could scurry to gold as a safe haven. Greek officials face a Monday deadline from the euro zone's working group to present a revised list of reform measures deemed necessary to unlock a critical stimulus package. The financial lifeline is considered vital for Greece to stave off bankruptcy.

While delivering a speech in New York, German finance minister Wolfgang Schaeuble told the Council of Foreign Relations that he thinks it is unlikely that Greece will reach a deal with the euro zone at a meeting next week in Latvia or anytime in the coming weeks.

Meanwhile, Greece's cash reserves could enter into negative territory next week after the deadline on Monday but ahead of the meeting in Riga, according to Reuters. In recent weeks, officials in Athens have reportedly hinted that it will meet its pension and wage obligations before repaying its debts to a troika of creditors.

When asked on Wednesday how a possible Greek default could roil markets, Draghi demurred, saying that he did not even want "to contemplate" the possible implications.

Earlier this week, International Monetary Fund chief economist Olivier Blanchard said the euro zone has better mechanisms and firewalls in place than it did five years ago to guard against contagion if Greece leaves the euro zone.