(Bloomberg) — Asian stocks rose as better-than-expected U.S. jobs data underlined the health of the world’s largest economy and boosted optimism for a soft landing.
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Australian, South Korean and Japanese stock benchmarks all rose on Friday’s rise in the S&P 500 index, while U.S. Treasury yields rose as traders cut bets on the Federal Reserve cutting interest rates. The yield on the U.S. 10-year Treasury rose another basis point on Monday, moving it closer to a key milestone of 4%.
The trade is shaped by signs of resilience in the U.S. economy, after U.S. employers added the most jobs in six months in September. Betting on a “no-landing” scenario in which growth momentum remains intact and inflation flares up could cause Treasuries and other safe-haven assets to fall while the dollar strengthens. The outlook for Chinese stocks to rise further when markets reopen on Tuesday after a week-long holiday has added to the positive outlook.
Vikas Pershad, a fund manager at M&G Investments, said on Bloomberg TV that while it was possible the US could slip into a recession, it was unlikely: “Given Friday’s jobs report, it’s still unlikely. “There is,” he said. “I’m not surprised by the rise in Chinese stocks. We’ve been adding significant capital to China throughout the year.”
Chinese authorities have announced a number of economic stimulus measures in the past two weeks. Officials of the National Development and Reform Commission will hold a conference on Tuesday to discuss the implementation of progressive economic policies.
Chinese stocks have soared since late September on a barrage of economic, financial and market support, but stocks such as Invesco, JPMorgan Asset Management, HSBC Global Private Banking and Wealth and Nomura Holdings have It is one of the companies whose prices are expected to rise. Reject with skepticism. There have been many false dawns in the past.
Elsewhere in Asia, New Zealand bonds fell less than US Treasuries as markets expected New Zealand’s central bank to cut interest rates by 50 basis points on Wednesday.
Oil prices fell as traders weighed possible retaliation for last week’s Israeli missile attack on Iran after President Joe Biden discouraged an attack on Tehran’s oil fields.
A raft of inflation data will be released in emerging markets this week, with Germany expected to cut its growth outlook. Minutes of the Fed’s September policy meeting and September CPI statistics are also expected to be released before the earnings season begins.
the story continues
The main movements in the market are:
stock
S&P 500 futures were little changed as of 9:59 a.m. Tokyo time.
Hang Seng futures fell 1%
Nikkei 225 futures (OSE) rose 2.4%
Japan’s TOPIX rose 1.7%
Australia’s S&P/ASX 200 rose 0.3%
Euro Stoxx50 futures rose 0.3%
currency
Bloomberg Dollar Spot Index little changed
The euro was almost unchanged at $1.0971.
The Japanese yen rose 0.2% to 148.41 yen to the dollar.
The offshore yuan was almost unchanged at 7.0923 yuan to the dollar.
cryptocurrency
Bitcoin rises 1.7% to $63,682.6
Ether rises 2% to $2,486.86
bond
merchandise
West Texas Intermediate crude oil fell 0.5% to $74.02 a barrel.
Spot gold fell 0.2% to $2,649.47 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Matthew Burgess.
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