Asia Stocks Rise on Fed Outlook; Dollar Steady: Markets Wrap

(Bloomberg) — Asian stocks edged higher as traders mulled US jobs data that supported optimism the Federal Reserve is nearing the end of its tightening cycle. US markets are shut Monday for the Labor Day holiday.

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Stocks rose at the open in South Korea and Australia, while holding on to small gains in Japan. Futures for Hong Kong equities were little changed, while those for the US steadied after the S&P 500 Index eked out a gain Friday to notch its best week since June. Tesla Inc. dropped over 5%, while energy shares rallied as oil topped $85 a barrel, with West Texas Intermediate futures climbing for an eighth straight day.

The yen advanced slightly and the dollar steadied after gaining Friday against major peers. There is no trading of cash Treasuries due to the US holiday.

Friday’s US jobs report showed a labor market undergoing a controlled cooling, illustrated by solid hiring, slower earnings growth and more people returning to the workforce. The moderation gives the Fed room to pause rate increases this month while keeping options open for another hike later in the year.

In Asia, China traders will look to see if equities there can build on last week’s advance. China’s trade and inflation data this week will likely signal that the economy’s recovery remains fragile, keeping pressure on policymakers to roll out more stimulus.

Global demand for Chinese goods is still weak, as reflected by the depressed level of manufacturing gauges in the country’s main export markets. And an ongoing slump in the property market is curbing China’s import demand for building materials.

Oil extended its rally and headed for the highest level since November on expectations that supply cuts by OPEC+ leaders will tighten the market. Gold was little changed.

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Elsewhere, key rate decisions for central banks are scheduled in Australia and Malaysia this week with rates expected to remain on hold.

Key events this week:

• Labor Day holiday in US and Canada, Monday

• ECB President Christine Lagarde makes speech at seminar organized by the European Economics & Financial Center, Monday

• Australia current account, rate decision, Tuesday

• Japan household spending, Tuesday

• China Caixin services PMI, Tuesday

• Eurozone S&P Global Eurozone Services PMI, PPI, Tuesday

• US factory orders, Tuesday

• ECB President Christine Lagarde chairs panel focused on central banks and international sanctions at ECB Legal Conference, Tuesday

• Australia GDP, Wednesday

• Eurozone retail sales, Wednesday

• Germany factory orders, Wednesday

• US trade, Wednesday

• Canada rate decision, Wednesday

• Bank of England Governor Andrew Bailey testifies to the UK parliament’s Treasury Select Committee, Wednesday

• Federal Reserve issues Beige Book economic survey based on reports from Fed’s 12 district banks, Wednesday

• Boston Fed President Susan Collins speaks on the economy at New England Council in Boston, Wednesday

• Dallas Fed President Lorie Logan at community listening session to explore economic issues facing the Lubbock area, Wednesday

• China trade, forex reserves, Thursday

• Eurozone GDP, Thursday

• US initial jobless claims, Thursday

• Bank of Canada Governor Tiff Macklem to speak on the Economic Progress Report in Calgary, Thursday

• New York Fed President John Williams participates in moderated discussion at the Bloomberg Market Forum, Thursday

• Atlanta Fed President Raphael Bostic speaks on economic outlook at Broward College in Davie, Florida, Thursday

• Japan GDP, Friday

• France industrial production, Friday

• Germany CPI, Friday

Some of the main moves in markets:

Stocks

• S&P 500 futures were little changed as of 9:06 a.m. Tokyo time. The S&P 500 rose 0.2% on Friday

• Nasdaq 100 futures were little changed. The Nasdaq 100 fell 0.1%

• Japan’s Topix index rose 0.2%

• Australia’s S&P/ASX 200 Index rose 0.3%

• Hong Kong’s Hang Seng Index were unchanged

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0774

• The Japanese yen rose 0.1% to 146.07 per dollar

• The offshore yuan was little changed at 7.2697 per dollar

• The Australian dollar was little changed at $0.6451

Cryptocurrencies

• Bitcoin fell 0.3% to $25,957.04

• Ether fell 0.4% to $1,635.59

Bonds

Commodities

This story was produced with the assistance of Bloomberg Automation.

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