Asian markets rise as US jobs data ease rate pressure on Fed

Asian markets rise as US jobs data ease rate pressure on Fed

Traders in Asian welcomed US jobs data suggesting the Federal Reserve can pause its interest rate hiking cycle
Traders in Asian welcomed US jobs data suggesting the Federal Reserve can pause its interest rate hiking cycle. Photo: MOHD RASFAN / AFP
Source: AFP

PAY ATTENTION: Have you recorded a funny video or filmed the moment of fame, cool dance, or something bizarre? Inbox your personal video on our Facebook page!

Asian stocks rose Monday on hopes the Federal Reserve has come to the end of its interest rate hiking cycle following a positive US jobs report.

Confidence has been buoyed recently by a string of reports pointing to a softening of the labour market and signs the economy is slowing, indicating the central bank's monetary tightening is kicking in.

Adding to the upbeat mood was hope that China will continue to unveil measures to boost its stuttering economy and beleaguered property sector.

While the 187,000 new jobs in August was more than forecast, the figures for the previous two months were revised significantly lower, while wage growth cooled.

The readings suggested the economy was not in danger of tipping into recession while at the same time slowing enough to justify not lifting borrowing costs any further -- a so-called "Goldilocks" scenario.

Read also

US hiring rises unexpectedly but labor market shows signs of cooling

"Fed chair (Jerome) Powell, or President (Joe) Biden for that matter, probably couldn't have scripted a better August employment report if they’d tried," said Ray Attrill at National Australian Bank.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

"The Goldilocks metaphor is much used and abused in economic and financial circles, but in relation to the various 'soft landing' signals emanating from the report, on this occasion it does seem entirely appropriate.

"The upshot of Friday’s report is that the market-implied chances of a Fed rate hike of 20 September have reduced to about seven percent from 12 percent beforehand."

After a broadly positive day on Wall Street, Asia enjoyed a healthy start to the week.

Hong Kong jumped almost two percent as investors played catch-up with Friday's regional advance after being closed because of a typhoon.

Read also

Markets largely rise as traders prepare for US jobs data

Shanghai, Tokyo, Sydney, Seoul, Singapore, Taipei, Manila and Jakarta were also in the green.

Investors are also keeping an eye on China, hoping for more measures to stimulate the economy after a number of announcements last week, including reducing mortgage down-payments and tax incentives.

"While these individual easing measures may not appear substantial, their collective implementation clearly signals policymakers' intentions to stabilise the property market, spur economic growth, and boost overall sentiment," said SPI Asset Management's Stephen Innes.

"Further targeted measures are anticipated to be incrementally introduced until policymakers are content with the achieved results."

However, observers say that traders are yearning for the government to unveil a big-bang stimulus similar to the $550 billion seen in 2008 during the global financial crisis.

News that battered developer Country Garden had won approval from creditors to extend a deadline for a key bond repayment, narrowly avoiding a potential default, provided some much-needed relief from worries over the property sector.

Read also

China factory activity contracts for fifth straight month in August

Key figures around 0230 GMT

Tokyo - Nikkei 225: UP 0.6 percent at 32,899.99 (break)

Hong Kong - Hang Seng Index: UP 1.9 percent at 18,727.96

Shanghai - Composite: UP 1.0 percent at 3,164.12

Dollar/yen: DOWN at 146.17 yen from 146.25 yen on Friday

Euro/dollar: UP at $1.0785 from $1.0777

Pound/dollar: UP at $1.2599 from $1.2590

Euro/pound: DOWN at 85.56 pence from 85.58 pence

West Texas Intermediate: UP 0.2 percent at $85.68 per barrel

Brent North Sea crude: UP 0.1 percent at $88.60 per barrel

New York - Dow: UP 0.3 percent at 34,837.71 (close)

London - FTSE 100: UP 0.3 percent at 7,464.54 (close)

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.