Viral Post
Friday's US jobs report showed that employers hired fewer workers in September than economists had forecast, and wage growth had slowed. 2 Min Read Asian equities climbed on Monday, October 5, after a weaker than expected US employment report reduced pressure on the country's Federal Reserve to keep raising interest rates. MSCI's Asia Pacific equities index gained 0.4%, while Japanese shares rallied over 2%. The Nikkei 225 rose 2.03% and the broader Topix advanced 1.11%.
Hang Seng futures slipped 0.2%. South Korea's stock market stayed shut for the country's National Foundation Day holiday. In India, the GIFT Nifty which predicts how the country's stock market would open for the day's trade, indicated a muted start in the green.
The Japanese yen strengthened 0.1% to 157.63 per dollar. The offshore yuan was little changed at 6.7068 per dollar. Also Read: Nasdaq hits new record high, US markets close in green as US job growth undershoots expectations On Wall Street, contracts for the Nasdaq 100 edged up 0.3%.
The underlying index closed at a record high on Friday, and a gauge of US semiconductor shares also rallied. Friday's US jobs report showed that employers hired fewer workers in September than economists had forecast, and wage growth had slowed. The unemployment rate climbed to 4.2%, partly because the workforce grew.
Money markets now price in less than a 25% chance of a Fed rate hike in October according to a Bloomberg report. Bond markets, however, remain under strain. The weak payrolls figure triggered only a short-lived rally in US Treasuries on Friday.
The market seemed to be still caught in a months long rout, driven by worries over persistent inflation, government spending and heavy corporate borrowing to fund the artificial intelligence buildout. The Benchmark US 10-year bond yields hit their highest level since 2002 last week. Investors now appeared to turn to this week's auctions of 10- and 30-year US Treasuries, which will test demand for longer dated debt.
The Fed will also publish minutes of its September meeting on Wednesday October 7, and these may show how policymakers view underlying price trends and inflation expectations. Also Read: Brent at $102; Oil prices swing on volatile West Asia war Oil prices meanwhile were volatile. Brent crude for December delivery rose above $103 a barrel early on Monday, then pared gains to trade around $102.
The contract gained almost 5% last week. West Texas Intermediate crude fell 0.6% to $90.60 a barrel. Prices climbed even after major OPEC+ producers agreed to hold oil production quotas unchanged next month.
Brent also drew support after Yemen launched a bid to recapture Houthi-controlled areas. With Bloomberg Inputs Home Market News Asian stocks rise as soft US jobs data eases Fed rate-hike pressure; Japan leads gains
Source: CNBC TV18
