(Bloomberg) — Asian stocks rose after better-than-expected U.S. payrolls data underscored the health of the world’s largest economy and boosted optimism about a soft landing.
Bloomberg’s Most Read
Stock indexes in Australia, South Korea and Japan rose after the S&P 500 and Treasury yields rose on Friday, as traders reduced bets on Federal Reserve interest rate cuts. US 10-year bond yields rose another basis point on Monday, approaching the key 4% threshold.
Trade is being shaped by signs of U.S. economic resilience, after U.S. employers added the most jobs in six months in September. Bets on a “no landing” scenario – where growth momentum remains intact and inflation revives – could boost the dollar while causing a drop in Treasuries and other safe-haven assets. Adding to this optimistic outlook is the prospect of further gains in Chinese stocks when the market reopens on Tuesday after a week-long holiday.
While a U.S. recession is possible, it is not likely and “given Friday’s jobs report, that probability is even lower,” said Vikas Pershad, fund manager at M&G Investments, speaking on Bloomberg Television. “We are not surprised that there has been a rally in Chinese stocks; we have added significant capital to China throughout the year.”
Chinese authorities have announced a series of stimulus measures over the past two weeks. Officials from the National Development and Reform Commission will hold a briefing on Tuesday on the implementation of incremental economic policies.
While Chinese stocks have soared since late September due to a flood of economic, financial and market support, companies such as Invesco Ltd., JPMorgan Asset Management, HSBC Global Private Banking and Wealth and Nomura Holdings Inc. are among those They view the rebound with skepticism. There have been a series of false dawns before.
Elsewhere in Asia, New Zealand bonds fell less than Treasuries as markets anticipate the country’s central bank will cut interest rates by 50 basis points on Wednesday.
Oil fell as traders weighed Israel’s possible retaliation against Iran for a missile attack last week, while President Joe Biden discouraged an attack on Tehran’s crude fields.
Germany is expected to lower its growth outlook this week as a series of inflation readings are released in emerging markets. The minutes of the Federal Reserve’s September monetary policy meeting, as well as the September CPI, will also be released before the start of earnings season.
Some of the main movements in the markets:
Stocks
-
S&P 500 futures were little changed at 9:59 a.m. Tokyo time.
-
Hang Seng futures fell 1%
-
Nikkei 225 (OSE) futures up 2.4%
-
The Japanese Topix rose 1.7%
-
Australia’s S&P/ASX 200 rose 0.3%
-
Euro Stoxx 50 futures up 0.3%
Coins
-
Bloomberg Dollar Spot Index Little Changed
-
The euro was little changed at $1.0971
-
The Japanese yen rose 0.2% to 148.41 per dollar
-
The offshore yuan was little changed at 7.0923 per dollar.
Cryptocurrencies
-
Bitcoin rose 1.7% to $63,682.6
-
Ether rose 2% to $2,486.86
Captivity
Raw materials
-
West Texas Intermediate crude fell 0.5% to $74.02 a barrel
-
Spot gold fell 0.2% to $2,649.47 an ounce.
This story was produced with the help of Bloomberg Automation.
–With help from Matthew Burgess.
Most Read Bloomberg Businessweek
©2024 Bloomberg LP