Asia firms on Wall Street cheer after US jobs data beat forecasts

Asian stocks rose on Monday, thanks to robust Wall Street performance at the end of last week, while the US dollar extended gains made after much stronger than expected June employment data.

SINGAPORE — Asian stocks rose on Monday, thanks to robust Wall Street performance at the end of last week, while the US dollar extended gains made after much stronger than expected June employment data.

European stock markets were also poised for a more positive start, with financial spreadbetter CMC Markets expecting Britain’s FTSE 100 and Germany’s DAX to open up 0.40% each, and France’s CAC 40 to start the day 0.30% higher.

MSCI’s broadest index of AsiaPacific shares outside Japan advanced 0.40% while Japan’s Nikkei rose 0.70%. Australian stocks were up 0.30% and South Korea’s KOSPI added 0.20%. The Hang Seng gained 1%, though China’s blue-chip shares were flat.

On Friday, Wall Street closed higher after US jobs growth beat forecasts. However, a lag in wage increases led investors to bet wage data would limit the extent of the Federal Reserve’s hawkishness.

The Nasdaq led gains with a 1% jump, while the S& P 500 added 0.60% and the Dow Jones Industrial Average rose by 0.40%.

“Strong headline growth, amid poor wage growth, is seemingly a perfect storm for equities,” Chris Weston, chief market strategist at IG in Melbourne, wrote in a note.

“Looking ahead, traders will continue to watch fixed income like a hawk for further knockon effects into foreign exchange and equities,” particularly with speeches by Fed Chair Janet Yellen and Governor Lael Brainard due this week, Mr. Weston added.

The 10- year US Treasury yield hit a two- month high of 2.398% on Friday. It was at 2.3909 on Monday.

The dollar inched up 0.20% to ¥114.135 early on Monday, extending Friday’s 0.60% jump on the jobs data.

“The solid jobs report gives us more reason to expect the Fed to announce that it’s prepared to start trimming its balance sheet,” said Mitsuo Imaizumi, Tokyobased chief foreign exchange strategist for Daiwa Securities.

“By contrast, the Bank of Japan is nowhere near a policy exit, and it’s taking steps that weaken the yen,” he said.

The dollar index, which climbed 0.20% on Friday last week, was little changed at 96.028 on Monday.

The euro was fractionally lower at $1.1402 on Monday, extending Friday’s 0.10% decline.

The Group of 20 meeting in Hamburg over the weekend did not have much impact on markets on Monday.

At the meeting, the world’s leading economies broke with the US on climate policy and US President Donald J. Trump and his Chinese counterpart Xi Jinping agreed to work together on North Korea’s nuclear threat and bilateral trade. Mr. Trump also discussed forming a cyber security unit to guard against election hacking with Russian President Vladimir Putin, though he later backtracked from that position. —