Japanese stocks rise as the dollar strengthens against the yen after U.S. jobs data dampens expectations for another big interest rate cut by the Federal Reserve this month (Richard A. Brooks)
Asian markets rose on Monday after a blockbuster U.S. jobs report eased concerns about the world’s top economy, but the dollar held on to gains as traders held off bets on further interest rate cuts.
Oil prices edged lower as traders awaited Israel’s response to last week’s Iranian missile attack, amid continued concerns about war across the region.
On Friday, all three major Wall Street indexes rose after data showed the U.S. added 254,000 jobs last month, more than expected, and the unemployment rate fell.
The figures were the highest in six months and significantly higher than those in July and August, which had raised concerns that the economy was heading into recession.
The dollar rose on the reading as investors lowered their expectations that the U.S. Federal Reserve would cut interest rates by 50 basis points for the second time in a row at its meeting later this month.
“September pay statistics were significantly better than expected,” National Australia Bank senior market economist Taylor Nugent said.
“(Boards) will need more bad news to match the magnitude of short-term price reductions.
“However, the data instead support (the) assessment that the U.S. labor market is not prepared for an impending sharp deterioration and may even be holding up a little better than expected.”
Traders looking for more information on the Fed’s decision will keep an eye on inflation data later in the week.
The dollar’s strength against the yen boosted Japanese stocks, pushing the Nikkei average up about 2%, while Hong Kong extended recent gains, boosted by China’s raft of economic stimulus measures.
It also rose in Sydney, Seoul, Singapore, Taipei and Manila.
Crude oil prices had a volatile day on Friday, soaring 5% at one point before tapering off.
The first rally came after US President Joe Biden said Israel was “discussing” the possibility of attacking Iranian oil facilities in retaliation for Iranian government barrage.
However, the commodity fell later in the day after he said he was trying to rally the world to avoid a possible escalation of all-out war in the Middle East and advised Tel Aviv against such action. did.
Still, investors are waiting for the next development in the crisis as Lebanon marks the first anniversary of Hamas’ deadly attack on Israel that led the country to war with the militant group Hezbollah.
– Main figures around 0230 GMT –
Tokyo – Nikkei Stock Average: up 1.9% to 39,354.63 (break)
the story continues
Hong Kong Hang Seng Index: 22,998.83, up 1.2%
Shanghai – Combined: Closed due to public holiday
USD/JPY: down to 148.37 from 148.64 yen on Friday
GBP/USD: increased from $1.3124 to $1.3128
EUR/USD: down from $1.0976 to $1.0974
EUR/GBP: down from 83.62p to 83.59p
West Texas Intermediate: down 0.4% to $74.05 per barrel
Brent crude: down 0.5% to $77.64 per barrel
New York – Dow: up 0.8% to 42,352.75 points (close)
London – FTSE 100: flat, 8,280.63 (closing price)
Dan/MCA
