Summary "The non-farm payrolls last week indicate there's no rush for the Fed to raise rates"
HONG KONG (AFP) - Asian traders took a breather Tuesday after the previous day s sharp gains but the dollar edged higher against the yen as the chances of a US interest rate hike this month diminish.
Markets remain largely upbeat after data Friday showed a healthy increase in US jobs creation -- indicating an improving economy -- but not strong enough to justify lifting borrowing costs soon.
"Monetary policy is going to remain easy around the world and that will continue to be supportive of risk assets," James Woods, a strategist at Rivkin Securities in Sydney, told Bloomberg News.
"The non-farm payrolls last week indicate there s no rush for the Fed to raise rates."
The prospect of interest rate being kept low for the time being sent markets soaring Monday but profit-taking dug into those gains in most markets in early trade Tuesday.
Hong Kong dipped 0.1 percent, Shanghai and Sydney each shed 0.4 percent, while Seoul was flat.
But Tokyo rose 0.2 percent by the break as exporters were supported by the weaker yen. The dollar rose to 103.75 yen from 103.38 yen late Monday.
On oil markets both main contracts were up after a volatile session Monday as investors were left disappointed by a lack of action from Russia and OPEC kingpin Saudi Arabia on addressing a global supply glut.
Prices soared Monday as news broke that the two were about to make a statement on the sidelines of the G20 summit in China, with expectations they would announce a freeze.
But the commodity dipped after they issued a vague comment on the "importance of constructive dialogue".
Stephen Innes, senior trader at OANDA, said in a note: "When the Saudi oil minister stated there is no explicit agreement and further commented that there is nothing decided on output, with nothing forthcoming, in typical buy the rumour, sell the fact fashion, oil prices plummeted."
In early Asian trade West Texas Intermediate was up 1.8 percent at $45.24 and Brent added 0.04 percent to $47.65. With US markets closed Monday for a holiday, electronic transactions on WTI will be booked with Tuesday s for settlement purposes.
