Talking Points:
- Asian stocks posted broad gains as a new week got under way
- Strong US payroll numbers provided a happy backdrop
- The US Dollar got some support too
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Asian stocks got their customary Monday glow from strong US employment data the previous Friday.
The world’s largest economy added 313,000 jobs in February, shattering the consensus which had looked for a gain of around 200,000. Unemployment remained at multi-year lows with still-tepid wage growth the only cloud.
The Nikkei 225 rose by 1.7% as investors cheered this news. The ASX 200 was up by 0.6% with every other Asian bourse in the green as its close approached. Even steel producers in places like Japan and Korea saw some gains despite the looming levy of import tariffs by the US.
That jobs report gave the US Dollar a lift. It added about 0.5% against the Japanese Yen on Friday and managed to hold the bulk of those gains. There seemed to be a general revival in risk appetite across the region, with the Yen under a little pressure.
A stronger Dollar saw the Gold price slip back, while crude oil prices retreated a little, having risen at the end of last week on news of reduced drilling activity Stateside.
It’s been a quiet day for Asian economic numbers and the trend will continue into the European and Asian sessions. Swiss sight deposit levels are coming up as is a US bill auction but neither is likely to draw much of a crowd. Market watchers won’t have long to wait for the next big likely mover though, with US Consumer Price Index data coming up on Tuesday.
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--- Written by David Cottle, DailyFX Research
Follow David on Twitter @DavidCottleFX or use the Comments section below to get in touch!
