Source: AFP
Most Asian markets rose on Monday after data showing fewer US jobs were created last month rekindled optimism that interest rates will be cut this year, while shares in mainland China rallied on hopes of fresh economic support from the government. .
A tech rally sent the Nasdaq ahead of Wall Street after Friday’s nonfarm payrolls data helped ease concerns that early-year inflation data meant the Federal Reserve would keep borrowing costs high two decades for an extended period of time. period.
The 175,000 new jobs in April’s NFP report was well below the previous month and also missed expectations by a large margin, while wage growth was also slightly below forecast.
Observers pointed out that while the reading showed a slowdown in the world’s number two economy, it was not seen as a big enough loss to fuel fears that a recession is on the horizon.
![](https://images.yen.com.gh/images/6d4b42e814b4d0fc.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/6d4b42e814b4d0fc.jpg?impolicy=cropped-image&imwidth=256)
Read also
Asian markets watch Wall St higher as interest rate hopes rise, eyes on US jobs
The news boosted bets on the Fed cutting interest rates in September, while investors also raised their outlook on how much they would be, although the two priced in are still well short of the six that had been forecast in beginning of the year.
“Softer wage growth and a slight increase in unemployment may ease some of the Federal Reserve’s concerns about cutting interest rates this summer,” said Stephen Innes at SPI Asset Management.
“The unexpected weakness across all key job lines is a much-needed friendly surprise for policymakers.”
Developments on Wall Street on Friday — and another record for London — gave Asian investors a healthy lead and most took over.
Shanghai was the top performer as mainland investors returned from a long break to join a global rally in recent days.
![](https://images.yen.com.gh/images/024d401bd9c72d1a.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/024d401bd9c72d1a.jpg?impolicy=cropped-image&imwidth=256)
Read also
Yen slips after rally on suspected meddling, stocks mixed
Traders also welcomed a report last week that leaders would consider ways to support China’s struggling property sector as well as use measures to provide fresh support to the economy.
The tools outlined included interest rates and the amount of cash banks must hold in reserve, Bloomberg News reported.
“Market sentiment appears to be gradually improving,” said abrdn’s Nicholas Yeo, pointing to improving traveler numbers, market reforms and strong corporate releases.
“More material support through higher-than-expected fiscal spending and additional help for the real estate market would go a long way toward improving sentiment in China.”
Hong Kong rose to push recent gains into a tenth straight trading day, while Sydney, Singapore, Taipei and Manila were also higher. Wellington and Jakarta went down.
The dollar rose against the yen, recovering some of the heavy losses it suffered on Friday in response to the US jobs report.
The Japanese unit endured a volatile period last week after hitting its weakest level in 34 years, prompting authorities to intervene in currency markets on Monday and Wednesday.
![](https://images.yen.com.gh/images/06fca084cb63c961.jpg?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/06fca084cb63c961.jpg?impolicy=cropped-image&imwidth=256)
Read also
The US Fed is likely to keep interest rates steady as hopes for early cuts fade
Keys around 03:00 GMT
Hong Kong – Hang Seng Index: UP 0.2 percent at 18,505.51
Shanghai – Composite: UP 1.0 percent to 3,135.57
Tokyo – Nikkei 225: Closed due to holiday
Dollar/yen: UP to 153.75 yen from 152.99 yen on Friday
EUR/USD: DOWN to $1.0765 from $1.0767
GBP/USD: UP at $1.2549 from $1.2546
Euro/pound: UP at 85.79 from 85.78 pence
West Texas Intermediate: UP 0.4 percent to $78.38 a barrel
North Sea Brent crude: UP 0.3 percent to $83.19 a barrel
New York – Dow: UP 1.2 percent at 38,675.68 (close)
London – FTSE 100: UP 0.5 per cent at 8,213.49 (close)
Source: AFP