Asian stocks started this week’s session on a strong note, generating gains with the U.S. jobs data topping the expectations. In Tokyo, the Nikkei 225 was up by 2.03 percent; the broader Topix soared by 1.47 percent. Over in Seoul, the benchmark Kospi index went higher by 0.7 percent. In the Australian market, the S&P/ASX 200 jumped by 0.82 percent. The materials and energy sub-indexes recorded excellent rises of 1.53 percent and 1.39 percent respectively
Amidst the positive job data, the dollar managed to stay stable vs. the yen at 106.80 after having risen 0.5 percent on Friday to pull further away from a 16-month low of 105.24 yen. The Dollar has risen 1 percent against the yen last week – its largest weekly percentage gain in five weeks.
The euro held steady at $1.2309, holding below a near three-week high of $1.2447 set on Wednesday. Subsided fears of a global trade war as a result of Trump’s tariffs initiative brought stability to the forex market.
It is important to stress, however, that the strong U.S. jobs growth data was counterbalanced by a slow increase in wages, which resulted in bets that the Fed would be more reluctant to raise interest rates year.