Asian stocks erase early losses as Shanghai defies expectations to gain ground

An investor monitors stock market data from an electronic board at a securities brokerage house in Beijing, China, Sept 1, 2015.
An investor monitors stock market data from an electronic board at a securities brokerage house in Beijing, China, Sept 1, 2015.PHOTO: EPA

SHANGHAI (Bloomberg) - Asian stocks erased losses and U.S. equity- index futures climbed as mainland Chinese shares rose in early trade, defying predictions of a rout after national holidays.

The Shanghai Composite Index rose 0.8 per cent by 10:33 a.m. in Tokyo, with a gauge of Chinese companies in Hong Kong advanced after closing at a two-year low Friday. Japanese shares swung to a gain as the yen slipped. Standard & Poor's 500 Index futures climbed after the gauge slumped in the wake of Friday's U.S. jobs data. Crude oil retreated, while Malaysia's ringgit and Turkey's lira led emerging-market currencies lower.

China officials predicted an easing of volatility in its currency and stock markets at the Group of 20 meeting in Turkey at the weekend. Friday's U.S. payrolls report was mixed, with fewer workers being added than estimated, while the unemployment rate dropped and earnings grew, doing little to change bets on a Federal Reserve rate increase this month.

In Singapore, the benchmark Straits Times Index was trading 0.6 per cent or 17.22 poijnts lower at 2,846.59 at 10am after opening as much as 0.99 per cent weaker.