Stock Markets Today: Asian Stocks Follow Wall Street Rally on Strong US Jobs Data

Asian in stock wall street Stocks rallied on Monday on hopes that modest wage gains would ease inflationary pressures after strong U.S. jobs data suggested a recession may be on the horizon. .

The Tokyo benchmark rose nearly 2%. ShanghaiHong Kong and Seoul also rose.

Wall Street’s benchmark S&P 500 rose 1.5% on Friday, putting traders on the verge of entering a so-called “bull market” after gaining nearly 20% in seven months.

Friday’s government data showed employers hiring more than expected in May, suggesting the economy is doing well despite repeated interest rate hikes to curb inflation. The slowdown in wage growth suggests that inflationary pressures may be easing, making the Fed less likely to need another rate hike to cool business activity.

“The market looks poised to ride last week’s uptrend as robust risk appetite finds comfort in hopes of a soft US landing,” SPI Asset Management’s Steven Innes said in a report. rice field.

Tokyo’s Nikkei Stock Average rose 1.9% to 32,106.94, while the Shanghai Composite Index rose less than 0.1% to 3,232.77. Hang Seng in Hong Kong rose 0.3% to 19.011.82.

Seoul’s KOSPI rose 0.6% to 2615.35, while Sydney’s S&PASX200 rose 1% to 7214.90.

India’s Sensex opened 0.5 percent higher at 62,860.24. Singapore rose, while Jakarta fell. Markets in New Zealand and Thailand were closed for public holidays.

On Wall Street, the S&P 500 index rose to 4,282.37 on Friday. The Dow Jones Industrial Average rose 2.1% to $33,762.76 and the Nasdaq Composite Index rose 1.1% to $13,240.77.

Industrial enterprises, energy producers and banks rose. ExxonMobil rose 2.3% as crude oil prices rose on hopes that an economic recovery would boost fuel consumption.

The Labor Department’s monthly employment report showed wage growth slowing despite the strengthening of employment. While this may discourage workers from keeping up with inflation, investors believe slower wage gains mean less upward pressure on inflation.

The unemployment rate also rose more than expected last month, rising to 3.7% from a 50-year low. This suggests a further slowdown in the job market and seems to contradict employment data from another survey.

The news prompted many traders to expect the Fed to keep rates unchanged at this month’s meeting. It is the first time the Fed has postponed raising interest rates for more than a year.

Rising interest rates have also hit many smaller banks, partly as customers withdraw their deposits in search of higher interest rates on money market funds.

Since March, several high-profile bank failures have rocked markets, and Wall Street is looking for other possible weaknesses. Some of the most closely watched companies have rallied following the jobs data. Pacwest Bancorp surged 14.1%, narrowing its annual loss to 66.6%.

Fed officials also warn that a moratorium on rate hikes at this month’s meeting does not necessarily mean the end of rate hikes.

In the energy market, benchmark US crude rose $1.06 to $72.80 a barrel on the New York Mercantile Exchange electronic trading. It climbed $1.64 to $71.74 on Friday. Brent crude, the price benchmark for international oil trading, rose $1.05 in London to $77.18 a barrel. It added $1.85 from the previous session to $76.13.

then the price rises Saudi Arabia On Sunday, it took unilateral steps to cut the amount of oil it sends to the global economy. The move is meant to help keep oil prices low after two previous supply cuts by major producers in the OPEC+ alliance failed to boost prices.

The dollar rose to 140.05 from 139.94 on Friday. The euro fell from $1.0712 to $1.0697.