The Asian stock market grew after a more robust than-expected US jobs report, highlighting that the largest economy in the world is still strong, which has also reinforced expectations for a soft landing, 

Due to updated bets over the extent of the Federal Reserve’s impending interest rate cut, the S&P 500 and Treasury rates rose on Friday. This also contributed to gains in the Australian and Japanese stock markets. The 10-year Treasury bond rate rose by one basis point on Monday.

Trade is being affected by expectations of US economic resilience following the largest employment addition by US companies in six months. A decline in safe-haven assets and an increase in the dollar are expected in scenarios without a recession.

This is a very opportune time to relocate to Asia given the fact there are signs of clear economic strength and therefore outperformance in cyclical sectors of which Asia is heavily weighted towards.

As the Hang Seng Index reached its highest level since March 2022 due to stimulus measures announced before the Golden Week holiday, traders’ attention will soon turn to getting ready for China’s reopening on Tuesday. 

Chris Weston, head of research at Pepperstone Group, of the NDRC meeting, said, “The market will be keen to hear about substances that could result in animal spirits, demand and consumption ramping up.” Weston added, “It’s hard to put into context the rally we’ve seen in these equity indices.”

On predictions that the nation’s central bank will cut interest rates by 50 basis points on Wednesday, bonds in New Zealand declined less than Treasury notes in other parts of Asia.

Early in the day, oil prices fell as traders evaluated Israel’s potential retaliation against Iran following a missile attack last week. The President, Joe Biden, dissuaded a strike on the oil fields in Tehran.

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