Asian stocks rose on Monday after a surprise rally Strong US jobs report This led to increased optimism about the economy, which led to higher prices on Wall Street.
US futures fell and oil prices also fell.
Japan’s Nikkei 225 index rose 1.9% to 39,354.63 after the yen fell against the US dollar. The Japanese currency has rebounded amid speculation about the central bank’s interest rate plans since Prime Minister Shigeru Ishiba took office last week.
In a Policy speech Ishiba said on Friday that he wants to see salary increases that exceed inflation and that he will encourage investment to create a “virtuous circle of growth and distribution.” He promised to provide economic support to low-income families and take measures for regional revitalization and disaster resilience.
But he has not introduced any major new initiatives, and his initial popular support rates are around 50% or less, relatively low for a new leader, according to Japanese media. He plans to dissolve Parliament on Wednesday to hold elections on October 27.
After rising against the dollar, the yen fell late last week. Early Monday, the dollar was trading at 148.57 yen, down from 148.72 late Friday. Low interest rates tend to boost the prices of stocks and other assets.
Elsewhere in Asia, Hong Kong’s Hang Seng rose 1.4% to 23,056.53 and Seoul’s Kospi rose 1.1% to 2,597.34.
Taiwan’s TAEX index rose 1.3%.
Mainland Chinese markets will reopen after a week-long holiday on Tuesday, and the government said it plans to explain details of the plans for that Economic stimulus At a morning press conference in Beijing. Ahead of the start of the National Day holiday on October 1, announcements of policies aimed at reviving the faltering real estate market have sent stock indices sharply higher and this week could bring more volatility.
“More fiscal stimulus is needed to stabilize the real estate market, restructure local government debt, and make structural reforms to address issues of excess capacity and contraction to turn the economy around,” B of A Securities said in a research note, noting the continued declines. in home sales, home prices and credit growth.
On Friday, the S&P 500 rose 0.9% and approached its level All-time high on MondayTo close at 5,751.07. The Dow Jones index rose 0.8% to 42,352.75 points, and the Nasdaq index rose 1.2% to 18,137.85 points.
The banks, airlines, cruise ship operators and other companies that led the way were those whose profits could benefit most from a stronger economy where people are working and more able to pay for things. Norwegian Cruise Line rose 4.9%, JPMorgan Chase rose 3.5%, and small-cap stocks in the Russell 2000 rose 1.5%.
The fears are over Tensions in the Middle East These factors are still taking their toll, having pushed oil prices to rise sharply while the world waits to see how this will happen Israel Will respond on October 1st Missile attack By Iran.
But the price of US crude oil fell 19 cents to $74.19 a barrel early Monday, while Brent crude, the international standard, lost 29 cents to $77.76 a barrel.
Treasury yields rose on Friday after the US government said employers added 254,000 more jobs to payrolls last month than they cut. This was an acceleration from August’s hiring pace of 159,000 jobs and exceeded economists’ expectations.
recently Encouraging The economic data raised hopes that the labor market will hold up after the Federal Reserve pressured monetary policy Brakes on the economy Through higher rates in order to eliminate them High inflation.
The Fed did I started lowering interest rates Friday’s jobs report was so strong that traders now expect it will not deliver another half-point rate cut before the end of the year after doing so in September.
In other trading early Monday, the euro rose to $1.0973 from $1.0967.
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