Asian markets edge up as traders weigh US jobs data

Asian markets edge up as traders weigh US jobs data

Healthy US jobs data last week reinforced expectations the Federal Reserve will hike interest rates again next month
Healthy US jobs data last week reinforced expectations the Federal Reserve will hike interest rates again next month. Photo: Robyn BECK / AFP/File
Source: AFP

Asian equities rose Monday in holiday-thinned trade after US jobs data indicated the Federal Reserve would likely have to hike interest rates again but soothed recent worries about a possible recession.

The closely watched non-farm payrolls reading on Friday followed a string of figures last week showing the world's top economy was slowing down and dented investor sentiment.

Focus is now on the release of inflation figures later this week, which will play a crucial role in the Fed's decision-making when it meets early next month.

While rates are seen going up, bets are for officials to end their hiking cycle earlier than previously thought, with a nervous eye on the banking sector after last month's turmoil that saw two lenders go under and Credit Suisse taken over.

Some commentators have even suggested the Fed would announce cuts by the end of the year.

Read also

Asian markets edge up in thin trade ahead of US jobs

"It seems the Fed will unlikely 'budge' on cuts unless the US economy is amid a deep downturn," said SPI Asset Management's Stephen Innes.

PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!

"And given the still sticky inflation outlook and the less dovish drumbeat from the Fed speak, cuts may need to be removed from the market unless we enter an actual recession -- and of course, neither outcome is an excellent backdrop for equities."

He added that the jobs report "was encouraging, signalling a subtle rebalancing of the labour market that again points to a soft landing".

With much of the region still closed for the Easter break, trading was light again on Monday.

Tokyo, Shanghai, Seoul, Singapore and Taipei rose but Jakarta inched down.

Expectations for another Fed hike also lifted the dollar against its peers.

Oil prices edged up as investors weighed OPEC's decision to cut output by more than a million barrels a day with the outlook for the global economy and the impact on demand.

Read also

Asian markets drop as recession talk builds

"Economic data will form a key input this week for energy markets," said Charu Chanana, at Saxo Capital Markets.

"Given that the OPEC decision was partly intended to drive out short sellers from the crude oil market, oil prices may be better able to reflect market fundamentals."

Key figures around 0230 GMT

Tokyo - Nikkei 225: UP 0.4 percent at 27,633.98 (break)

Shanghai - Composite: UP 0.1 percent at 3,331.10

Hong Kong - Hang Seng Index: Closed for a holiday

Euro/dollar: DOWN at $1.0901 from $1.0918 on Friday

Pound/dollar: DOWN at $1.2418 from $1.2443

Euro/pound: UP at 87.81 pence at 87.75 pence

Dollar/yen: UP at 132.65 yen from 131.86 yen

West Texas Intermediate: UP 0.2 percent at $80.85 per barrel

Brent North Sea crude: UP 0.1 percent at $85.18 per barrel

New York - Dow: Closed for a holiday

London - FTSE 100: Closed for a holiday

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.