LONDON/NEW YORK, 2 October 2003 — The euro gained ground on the dollar yesterday following a US manufacturing report that pointed to continued weakness in the US economy. The single currency in late-day trading was at 1.1709 dollars, up from 1.655 in New York late on Tuesday. Against the yen, the dollar was at 110.63 against 111.50 on Tuesday.
The euro broke through the 1.17-dollar level just minutes after an index published by the Institute for Supply Management showed that US manufacturers expanded activity in September for the third month in a row, albeit at a slower pace. The index eased to 53.7 points in September from 54.7 points in August. Any figure above 50 points indicates an expansion in activity.
But the jobs picture remained bleak in a sector that has laid off about 2.7 million people in three years. Job cuts accelerated, with the employment index dropping to 45.7 points in September from 45.9 in August. It was the 36th consecutive month below 50 points, indicating job layoffs.
Stocks also held modest gains in the United States yesterday after a sell-off a day earlier lured bargain hunters. The market was off its session highs, but held gains. The technology-laced NASDAQ Composite Index rose 13 points, or 0.75 percent, to 1,800, after losing more than 2 percent on Tuesday. The blue-chip Dow Jones industrial average advanced 65 points, or 0.71 percent, to 9,340, after sinking more than 1 percent a day earlier. The broad Standard & Poor’s 500 Index gained 6 points, or 0.70 percent, to 1,002.
Asian share prices closed mixed yesterday, with the focus on Tokyo where a positive Tankan survey of business sentiment gave stocks a boost, dealers said. Japanese share prices closed 1.39 percent higher as an upbeat business confidence survey by the Bank of Japan lent support and the yen weakened slightly, easing concerns that a strong currency would hurt the economy, dealers said. The Tokyo Stock Exchange’s Nikkei-225 index rose 142.19 points to end the day at 10,361.24, while the Topix index of all first section stocks climbed 11.14 points or 1.09 percent to 1,029.94.
Singapore share prices closed flat with blue chips under pressure due to a lack of positive leads, dealers said.
