Stocks rose during the Asian trading session on Friday after a lukewarm US jobs report poured cold water on the prospect of an imminent rate hike from the Federal Reserve and regional activity gauges pointed to an economic expansion during June.

In Hong Kong, the benchmark Hang Seng Index opened up 185 points, or 0.81 percent, at 23,240.

The benchmark gained ground from there to stand 238 points, or 1.03 percent, at 23,293 at one stage in early trading

The tech index was up 33 points, or 0.76 percent, at 4,487 while the China enterprises index was 62 points, or 0.82 percent, higher at 7,674.

Up north, the Shanghai Composite Index opened up two points, or 0.06 percent, at 4,031.

The Shenzhen Component Index was down 18 points, or 0.12 percent, at 15,480 while the ChiNext Index was down six points, or 0.16 percent, at 4,010.

In Tokyo, the Nikkei saw volatility, opening down 57 points at 68,676 before slumping 1,123 points to 67,609 and then rebounding into positive territory.

It last stood at 69,243, up 510 points or 0.74 percent, at one stage before midday.

In Seoul, the Kospi too saw sharp swings, opening up 91 points, or 1.2 percent, at 7,739 before falling 269 points, or 3.5 percent, to 7,378 and then rebounding.

The benchmark stood at 7,864, up 216 points or 2.83 percent, at one stage before noon.

US job growth slowed sharply in June and payroll gains for the prior two months were revised lower, according to the latest data, pointing to a cooling labour market.

The unemployment rate dropped to 4.2 percent last month from 4.3 percent in May as workers left the labour force, pushing the participation rate to the lowest level in more than five years.

"The figures challenged the narrative that the Fed remains on track to hike in the second half of this year," Westpac analysts wrote in a research report.

The tepid jobs data doused traders' expectations of an imminent rate hike and raised the odds that the Fed will keep rates on hold until October. (Reuters/Xinhua)



Edited by Tony Sabine