Asian Stocks Eye Early Gains After US Jobs Report: Markets Wrap

Most Asian stocks are set to open higher in early trading after strong US jobs data underscored the health of the world’s largest economy and boosted soft landing hopes.

Bloomberg
Published7 Oct 2024, 04:25 AM IST
Asian Stocks Eye Early Gains After US Jobs Report: Markets Wrap
Asian Stocks Eye Early Gains After US Jobs Report: Markets Wrap

Most Asian stocks are set to open higher in early trading after strong US jobs data underscored the health of the world’s largest economy and boosted soft landing hopes. 

Equity futures in Australia and Japan rose while those in Hong Kong slipped. US contracts edged higher early Monday after the S&P 500 rose 0.9% on Friday. The dollar was steady following its best week in two years as Treasury yields surged amid recalibrated bets on the size of the Federal Reserve’s next rate cut. 

The so-called soft landing narrative has again taken over markets, pushing back concerns of a US recession after employers added 254,000 jobs in September — the most in six months — and the jobless rate unexpectedly declined. A slew of other economic data last week — including private-sector job numbers and a measure of the services sector — painted a picture of a strong US economy. 

“Tailwinds into Asia are probably more significant than anywhere else in the world” with the Goldilocks US economy and fresh Chinese stimulus, said Kyle Rodda, a senior analyst at Capital.com. “This is a very opportune time to reallocate to Asia given the fact there are signs of clear economic strength and therefore outperformance in cyclical sectors of which Asia is heavily weighted towards.”

Asian currencies, however, are set to further unwind last quarter’s rally after a gauge of the dollar climbed 0.4%, pressuring emerging market peers. The Korean won slumped more than 1% after the jobs report while currency forwards for the Indonesian rupiah, Philippine peso and Thai baht all fell, indicating early losses when spot markets reopen.

While expectations of the Fed slashing rates have adjusted, “more needs to be done,” said Win Thin, global head of markets strategy at Brown Brothers Harriman. “This week brings key U.S. inflation data that should help extend the dollar recovery and keep downward pressure on emerging market FX.”

Traders will soon shift to preparing for China’s reopening on Tuesday after stimulus measures announced prior to the Golden Week holiday lifted Hong Kong shares to their highest since March 2022. Officials from the National Development and Reform Commission will host a briefing on implementing incremental economic policies.

“The market will be keen to hear substance that could result in animal spirits, demand and consumption ramping up,” Chris Weston, head of research at Pepperstone Group said of the NDC meeting. “It’s hard to put into context the rally we’ve seen in these equity indices” and all have found strong buying support on the slightest pullback, he said. 

Elsewhere in Asia, New Zealand bonds fell less than Treasuries as markets anticipate the nation’s central bank will cut interest rates by 50 basis points on Wednesday. Australia’s bond market was closed for a holiday in Sydney. 

Oil drifted lower in early trading Monday as traders weighed Israel’s potential retaliation against Iran for a missile attack last week, with President Joe Biden discouraging a strike on Tehran’s crude fields.

This week, Germany is expected to downgrade its growth outlook while a slew of inflation readings in emerging markets are due. Minutes from the Fed’s September policy meeting will also be released as well as the September CPI print before the start of earnings season.

Some of the main moves in markets:

Stocks

Currencies

Cryptocurrencies

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

This article was generated from an automated news agency feed without modifications to text.

Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:7 Oct 2024, 04:25 AM IST
Business NewsNewsWorldAsian Stocks Eye Early Gains After US Jobs Report: Markets Wrap

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    150.90
    03:56 PM | 7 NOV 2024
    -2.7 (-1.76%)

    Bharat Electronics share price

    300.20
    03:58 PM | 7 NOV 2024
    -1.65 (-0.55%)

    Bank Of Baroda share price

    262.90
    03:29 PM | 7 NOV 2024
    0.3 (0.11%)

    Indian Oil Corporation share price

    144.20
    03:59 PM | 7 NOV 2024
    -0.45 (-0.31%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Apollo Hospitals Enterprise share price

    7,424.60
    03:40 PM | 7 NOV 2024
    454.75 (6.52%)

    Welspun Corp share price

    798.00
    03:29 PM | 7 NOV 2024
    24.55 (3.17%)

    City Union Bank share price

    181.50
    03:29 PM | 7 NOV 2024
    2 (1.11%)

    Federal Bank share price

    206.00
    03:57 PM | 7 NOV 2024
    1.2 (0.59%)
    More from 52 Week High

    Hindalco Industries share price

    648.35
    03:51 PM | 7 NOV 2024
    -59.9 (-8.46%)

    Trent share price

    6,498.45
    03:59 PM | 7 NOV 2024
    -454.6 (-6.54%)

    Glenmark Pharmaceuticals share price

    1,658.00
    03:29 PM | 7 NOV 2024
    -110.95 (-6.27%)

    Blue Star share price

    1,776.95
    03:56 PM | 7 NOV 2024
    -101.8 (-5.42%)
    More from Top Losers

    Swan Energy share price

    535.60
    03:29 PM | 7 NOV 2024
    39.05 (7.86%)

    KEC International share price

    1,050.30
    03:40 PM | 7 NOV 2024
    74.8 (7.67%)

    Apollo Hospitals Enterprise share price

    7,424.60
    03:40 PM | 7 NOV 2024
    454.75 (6.52%)

    FSN E-Commerce Ventures share price

    192.90
    03:29 PM | 7 NOV 2024
    11.45 (6.31%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      78,575.00-1,790.00
      Chennai
      78,581.00-1,790.00
      Delhi
      78,733.00-1,790.00
      Kolkata
      78,585.00-1,790.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in News

        HomeMarketsPremiumInstant LoanMint Shorts