Asian stocks rise as weak U.S. jobs data eases Fed hike bets; Japan surges
Asian equity markets advanced as soft United States employment figures reduced expectations for another Federal Reserve interest rate increase. Japan's Nikkei and Topix indexes surged up to 2 percent. The regional gains followed a technology-driven Wall Street rally that lifted the Nasdaq to a record close. Easing inflation concerns, lower oil prices, and reduced pressure in longer-dated bonds supported investor sentiment across global markets despite regional economic cooling and Treasury yields remaining near multi-decade highs.
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- ✓ Asian stocks rose as soft United States jobs data reduced the odds of another Federal Reserve rate hike.
- ✓ Japan's Nikkei and Topix indexes jumped up to 2 percent.
- ✓ Longer-dated Treasury yields hovered near multi-decade highs.
What changed
Asian shares advanced after soft United States employment figures eased expectations for further Federal Reserve interest rate hikes.
Live updates
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Asian Stocks Rise as Weak US Jobs Data Eases Fed Hike Bets
Asian equity markets advanced as soft United States employment figures reduced expectations for another Federal Reserve interest rate increase. Japan's Nikkei and Topix indexes surged up to 2 percent. The regional gains followed a technology-driven Wall Street rally that lifted the Nasdaq to a record close. Easing inflation concerns, lower oil prices, and reduced pressure in longer-dated bonds supported investor sentiment across global markets despite regional economic cooling and Treasury yields remaining near multi-decade highs.
Why it matters
Global stock markets have reacted sharply to shifting economic data and central bank expectations, particularly regarding United States monetary policy. Weaker labor market indicators help alleviate fears of aggressive tightening by the Federal Reserve, providing temporary relief to risk assets. Meanwhile, currency markets face separate pressures, as the euro languishes near 17-month lows following a brief touch of US$1.116 overnight under the weight of France's debt burden.
What is confirmed
- Asian stocks rose as soft United States jobs data reduced the odds of another Federal Reserve rate hike.
- Japan's Nikkei and Topix indexes jumped up to 2 percent.
- Longer-dated Treasury yields hovered near multi-decade highs.
Still unconfirmed
- Regional economic cooling is being successfully offset by the Wall Street equity rally and lower oil prices.
What to watch next
- Upcoming United States inflation reports and central bank commentary
- Further movements in longer-dated Treasury yields and oil prices
- Developments regarding European currency valuations and debt burdens
confidence 100%Sources used for this update (18)
- en.wikipedia.org — Asia - Wikipedia
- www.history.com — Asian History - Timeline, Traditions & Culture | HISTORY
- Bloomberg.com — Asian Shares Rise as Fed Bets Ease, Bonds Edge Up: Markets Wrap
- 10TV — Asian shares are higher as easing worries over inflation reduce odds for another Fed rate hike
- Morningstar — EMEA Morning Briefing: Fed Rate-Hike Prospects Ease
- Investing.com — Asian stocks rise as weak U.S. jobs data eases Fed hike bets; Japan surges
- Investing.com — Euro pummelled by France’s debt burden; stocks mixed By Reuters
- Seeking Alpha — Asian equities mixed as Wall Street rally offsets regional economic cooling
- Briefs Finance — Emerging Markets Rally After Soft U.S. Jobs Data
- NDTV Profit — Asian Markets Today: Nikkei, Topix Jump Up To 2% As Fed Rate Hike Bets Ease
- Yahoo Finance — Asian shares rise in thin holiday trade
- Yahoo Finance — Interest Rate Outlook Lifts Asian Stock Markets
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