TOKYO : Asian stocks rallied and the dollar reached a fresh seven-week peak on the yen on Monday after blowout U.S. labour data dispelled fears of a recession and spurred a sharp paring of rate-cut bets.
Short-term U.S. Treasury yields rose after the closely watched non-farm payrolls report on Friday showed the economy unexpectedly added the most jobs in six months in September.
Crude oil prices eased from a one-month peak even as Israel bombed targets in Lebanon and the Gaza Strip, with Monday marking one year since the Hamas attack that triggered the war.
Japan’s Nikkei led regional equity gains with a 2 per cent rally as of 0015 GMT, given additional momentum by the softer yen.
Australia’s stock benchmark added 0.12 per cent and South Korea’s Kospi gained 0.29 per cent.
Hong Kong’s Hang Seng had yet to open, and mainland Chinese stocks remain closed until Tuesday for the Golden Week holiday.
MSCI’s broadest index of Asia-Pacific shares climbed 0.4 per cent.
U.S. Dow futures pointed 0.08 per cent higher after the cash index closed at an all-time peak after the payrolls data on Friday.
“The reaction in markets conveys what the key themes and risks for market participants are presently: economic growth, and its impact – for equities – on future earnings,” said Kyle Rodda, senior financial market analyst at Capital.com.
“There’s also seemingly a revival of the U.S. economic exceptionalism trade.”
The U.S. dollar pushed as high as 149.10 yen for the first time since Aug. 16 before last trading hands up 0.18 per cent at 148.87 yen.
Japan’s top currency diplomat, Atsushi Mimura, said on Monday that officials will monitor foreign exchange moves, including speculative trading.
The euro eased 0.07 per cent to $1.0971, slipping back towards Friday’s seven-week trough at $1.09515.
Bets for a super-sized 50-basis-point rate cut at the Federal Reserve’s next policy announcement on