Asian Stocks Advance as Weak US Jobs Data Lifts S&P 500 to Record
Asian equities climbed on Monday after weaker-than-expected U.S. jobs data drove Wall Street to new highs and dampened expectations for a near-term Fed rate hike, while the dollar held steady and the yen hovered near 157.90 per dollar.
Asian stocks advanced on Monday, buoyed by a rally on Wall Street that pushed the S&P 500 to a record high after disappointing U.S. employment data. The weak jobs report reinforced market expectations that the Federal Reserve is unlikely to raise interest rates in September, with traders sharply cutting the probability of a near-term hike.
Treasury yields declined in the wake of the data, while the U.S. dollar held broadly steady. The Japanese yen traded around 157.90 per dollar, reflecting a muted reaction in currency markets.
The shift in Fed expectations provided a broad lift to risk assets, with Asian indices tracking the overnight gains in U.S. equities. Investors now see a more supportive environment for equities, as central bank tightening concerns ease.
Source: First Squawk