Asia's stock markets opened the New Year with index rises this morning, this due to optimism regarding the world economic recovery in 2011, and the moderation of political activity in China. As such, Hong Kong was up by 1.4%, Seoul added 0.7%, Singapore climbed by 1.2% and Taiwan climbed 0.5%. In Japan, Australia, China and Thailand the stock markets are closed today for the holidays.
In the global macroeconomic sphere, on Saturday it has been reported that the Chinese procurement managers' index had descended for the first time in five months, suggesting that government's efforts to cool off the economy are beginning to bear fruit. The index had descended to a level of 53.9 points in December, as compared to 55.2 points in November.
This week investors and economists are expected to be concerned about the U.S. labor market, with the ADP employment report tracking the number of jobs in the private non-agricultural sector, expected to be published on Wednesday. It is also expected to point an improvement in the labor market. On Friday the Fed's monthly employment report is scheduled to be published, expected to point to a slight decline in U.S. unemployment to a level of 9.7% and a growth of 140 thousand jobs. Great attention will also be paid to the Federal Reserve Chairman's Senate testimony on Friday, which may discuss the possibility of extending quantitative easing into the coming year as well.