In Asian Equity Markets indices traded higher on Monday morning after U.S. President Donald Trump’s announcement last week that tariffs would not be slapped on Mexican goods. Mainland Chinese stocks were higher in early trade, with the Shenzhen component adding 0.35%. The Shanghai composite was largely flat. Japan’s Nikkei 225 jumped 1.05% in morning trade. South Korea’s Kospi also rose 0.48%, with shares of chipmaker SK Hynix gaining more than 1%. Meanwhile, markets in Australia are closed on Monday for a holiday.
In Currency Markets the Mexican peso jumped against the dollar early in Asia on Monday after the United States and Mexico struck a migration deal late last week to avert a tariff war, providing much-needed relief to fragile market sentiment. The Mexican peso rose as much as 2% against the dollar as trading resumed for the first time after Mexico agreed on Friday to expand along the entire border a program that sends migrants seeking asylum in the United States to Mexico. The peso was last up 1.65% at 19.30 pesos per dollar.
In Commodities Markets oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia were likely to keep withholding supplies, and in relief as the United States withdrew its threat to impose import tariffs on Mexico, removing one cloud over the global economy. Front-month Brent crude futures, the international benchmark for oil prices, were at $63.52, 23 cents, or 0.4%, above Friday’s close. U.S. West Texas Intermediate (WTI) crude futures were at $54.29 per barrel, 30 cents, or 0.6%, above their last settlement.
In US Equity Markets indices charged higher on Friday, as sharply slowing U.S. job growth boosted hopes for Federal Reserve interest rate cuts while optimism about potential progress in U.S. trade fights with China and Mexico added to risk appetites. The S&P 500 gained 1.05%, to 2,873.34 and the Nasdaq Composite added 1.66%, to 7,742.10. The S&P’s biggest boosts on the day were Microsoft Corp, Apple Inc and Amazon.com. However, tariff-sensitive industrials underperformed slightly with a 0.9% gain.
In Bond Markets U.S. Treasury yields fell on Friday, with 10-year yields hitting their lowest since September 2017 as domestic employers hired far fewer workers than expected in May, raising bets the Federal Reserve would lower interest rates. Yields on U.S. 10-year Treasury notes were 5.60 basis points lower at 2.067%. They touched 2.053% after the payrolls report, their lowest since September 2017. Two-year yields were 7.80 basis points lower at 1.803%. They fell to 1.775%, which was just above their lowest since December 2017.