Asian equity markets opened higher on Monday, reflecting a calmer outlook for U.S. monetary policy. Investors pointed to softer inflation data and a slower pace of job growth in the United States, which together lowered the perceived likelihood of a second Federal Reserve rate hike this year.
Key market moves
Japan’s benchmark Nikkei 225 surged 2.5% in early trading, reaching 70,037.61 – the index’s first breach of the 70,000‑point mark in three months. Australia’s S&P/ASX 200 inched up 0.1% to 8,691.90, while Hong Kong’s Hang Seng held steady at 23,971.55. Trading was closed in Shanghai and South Korea due to national holidays.
Technology‑focused stocks drew particular interest. Tokyo‑based semiconductor equipment maker Tokyo Electron jumped 5.5%, and SoftBank Group’s shares rose 3.3% after the conglomerate highlighted its AI initiatives. Taiwan Semiconductor Manufacturing Co. (TSMC) added 2.6% as demand for chips tied to artificial‑intelligence applications remains robust.
U.S. data that shifted sentiment
Last week, U.S. equities closed near record highs after the latest jobs report showed employers added 29,000 positions – well below economists’ expectations and a slowdown from August’s net gain of 133,000. The modest hiring pace suggested the labor market is cooling, which could ease pressure on the Federal Reserve to raise its benchmark rate again.
The Fed recently lifted its policy rate for the first time in three years, aiming to curb the painful rise in living‑costs. With the new jobs data, market participants expect the central bank to be less aggressive, a view that helped calm bond markets.
Bond market reaction
The yield on the 10‑year Treasury briefly fell below 5.17%, down from a peak near 5.35% earlier in the week. The yield later rebounded to 5.28%, still more than 0.10 percentage points above its intraday low. The dip in long‑term yields contributed to the modest pullback in U.S. equity gains later in the session.
Energy and currency markets
Crude oil prices slipped, with benchmark U.S. West Texas Intermediate falling 1.03% to $90.17 a barrel and Brent crude easing 0.58% to $101.66. The price movement reflects ongoing uncertainty about how the conflict with Iran may affect global oil supplies.
In the foreign‑exchange market, the U.S. dollar edged higher against the Japanese yen, trading at 157.97 yen versus 157.83 the previous close. The euro slipped to $1.1179 from $1.1257.
What this means for investors
Analysts note that the combination of softer inflation expectations and a slower hiring pace could keep the Fed on hold for the remainder of the year, supporting equity valuations while limiting upside for bond yields. Investors with exposure to Asian markets may benefit from the current rally, especially in sectors tied to artificial intelligence and semiconductor production.
However, market participants are reminded that the outlook remains subject to further U.S. economic releases and any geopolitical developments that could impact energy prices or global supply chains.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
