The Australian stock market is advancing on Monday following the gains on Wall Street Friday after the release of stronger than expected U.S. jobs data. Higher commodity prices also gave a boost to resources stocks.
Canada’s main stock index rose on Friday to extend this week’s gains, helped by higher oil prices, which boosted energy shares, and a lift to bond yields after data showed stronger-than-expected jobs growth in the United States.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 66.01 points, or 0.43 percent, at 15,257.97. For the week, the index gained 0.9 percent.
“We have had some strong earnings out of Canada which is starting to turn the index around,” said Ian Scott, equity analyst at Manulife Asset Management.
Higher oil prices boosted energy shares nearly 2 percent, with Suncor Energy Inc climbing 1.3 percent to C$41.73.
U.S. crude oil prices settled 1.1 percent higher at $49.58 a barrel after a strong U.S. jobs report bolstered hopes for growing energy demand.
Oil seems to have hedge funds in its corner as futures stagger toward $50 a barrel.
Money managers haven’t been so optimistic about West Texas Intermediate crude since April, piling on bets that prices will rise while short-sellers step back. It helps that supplies in the U.S., the biggest oil consumer, have shrunk to the lowest this year.
“We’ve seen 21 million barrels of U.S. inventory declines this quarter. That’s pretty substantial,” Rob Thummel, a managing director at Tortoise Capital Advisors LLC,, said by telephone. “That has kind of sent some of the bears back into hibernation.”
Shares of Chesapeake Energy Corporation (NYSE:CHK) stocks surged 0.67% and closed at $4.53.