In Asian Equity Markets Japan’s Topix index rose on Monday to its highest level in more than three decades, while the Nikkei also jumped, as investors continued to buy undervalued stocks on hopes of a swift economic recovery and positive corporate outlook. The Nikkei index gained 1.83 percent to close at 29,659.89, while the broader Topix rose 1.28 percent to 2,041.22. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4 percent to the highest since late July. Chinese blue chips rose 1.7 percent amid speculation Beijing would also be adding stimulus through fiscal and monetary policy.
In Currency Markets the dollar languished near a one-month low versus major peers on Monday, as investors pushed back expectations for when the Federal Reserve will begin tapering its massive stimulus. The dollar index edged 0.05 percent higher to 92.155. The euro was flat at $1.18775 after matching the highest level since June 29 at $1.1909 at the end of last week. The greenback edged 0.1 percent higher to 109.79 yen. Australia’s dollar weakened 0.17 percent to $0.7435, but remained close to its highest since July 15 of $0.74775, touched in the previous session.
In US Equity Markets the Nasdaq ended Friday at a new peak but the other main Wall Street indexes fell, reflecting the mixed sentiment stemming from a disappointing U.S. jobs report which raised fears about the pace of economic recovery but weakened the argument for near-term tapering. The S&P 500 lost 0.03 percent, to 4,535.43 and the Dow fell 0.21 percent, to 35,369.09. The Nasdaq Composite added 0.21 percent, to 15,363.52. A majority of the 11 S&P sectors closed down, with the utilities index the worst performer at 0.8 percent lower.
In Commodities Markets oil prices fell on Friday on the U.S. labor report showing a patchy recovery from the pandemic, but losses were capped by concerns U.S. crude supply would continue to be limited in the wake of Hurricane Ida, which cut offshore U.S. production. Brent crude futures fell 42 cents to settle at $72.61 a barrel. U.S. crude slid 70 cents to settle at $69.29 a barrel. Spot gold was up 1.2 percent at $1,830.71 per ounce. Silver jumped 3.4 percent to $24.70 per ounce, while platinum was 2.6 percent higher at $1,024.41. Palladium rose 1.1 percent to $2,425.70.
In European Equity Markets stocks fell on Friday as U.S. employment data pointed towards slowing growth in the world’s largest economy, with retail and travel stocks exposed to American markets suffering the most. The pan-European STOXX 600 index fell 0.6 percent, marking its worst fall in two weeks after data showed the U.S. economy created the fewest jobs in seven month in August. European technology stocks were the best performers for the week, up nearly 2 percent as investors fled to sectors most resilient to disruptions caused by the pandemic.
In Bond Markets longer-dated U.S. Treasury yields rose on Friday and the yield curve steepened after data showed wages increased more than expected in August even as jobs growth slowed. Benchmark 10-year yields rose to 1.322 percent, from around 1.299 percent before the data was released. The yield curve between two-year and 10-year notes steepened to 111 basis points, from 108 basis points. Two-month note yields rose to at least five-month highs of seven basis points on growing concerns that lawmakers will delay increasing the debt limit until the last minute.