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Asian Stocks Surge as Soft US Jobs Data Eases Fed Rate Hike Fears; Japan Leads Gains
- •Asian equities climbed after a weaker-than-expected US employment report reduced pressure on the Federal Reserve to keep raising interest rates.
- •MSCI's Asia Pacific equities index gained 0.4%, with Japanese shares rallying over 2%; the Nikkei 225 rose 2.03%.
- •US jobs report showed fewer workers hired in September than forecast and slowed wage growth, pushing the unemployment rate to 4.2%.
- •Money markets now price in less than a 25% chance of a Fed rate hike in October, according to a Bloomberg report.
- •Bond markets remain under strain despite the weak payrolls figure, with investors eyeing upcoming US Treasuries auctions and Fed meeting minutes.
Key Questions Answered
Asian equities climbed on Monday, October 5, following a weaker-than-expected US employment report that reduced pressure on the Federal Reserve to raise interest rates. MSCI's Asia Pacific equities index gained 0.4%, and Japanese shares rallied over 2%, with the Nikkei 225 rising 2.03% and the Topix advancing 1.11%.
The US unemployment rate climbed to 4.2% in September partly because the overall workforce grew. Additionally, employers hired fewer workers than economists had forecast, and wage growth slowed down.
Brent crude for December delivery rose above $103 a barrel early on Monday before paring gains to trade around $102, while West Texas Intermediate crude fell 0.6% to $90.60 a barrel. These movements occurred even after major OPEC+ producers agreed to hold production quotas unchanged next month, with Brent also drawing support from a Yemeni bid to recapture Houthi-controlled areas.
