Asian Markets Mixed Amid Strong U.S. Jobs Report

Asian markets show mixed trends as investors analyze the strong U.S. jobs report. The focus is on Japan’s GDP and the Bank of Japan’s rate decisions.

Global Markets Overview:

• Asian Stock Markets: Nikkei up 0.19%, Shanghai Composite down 1.01%, Hang Seng down 0.89%, ASX down 1.41%
• Commodities: Gold at $2318.5 (-0.37%), Silver at $29.38 (-1.861%), Brent Oil at $81.13 (-0.25%), WTI Oil at $77.71 (-0.03%)
• Rates: US 10-year yield at 4.45, UK 10-year yield at 4.37, Germany 10-year yield at 2.669

News & Data:

• (JPY) M2 Money Stock y/y 1.9% vs 2.1% expected

Asian Markets Mixed Amid Strong U.S. Jobs Report

Markets Update:

Asian markets saw a mixed trend on Monday following the release of a robust U.S. jobs report last Friday, indicating increased hiring and wage growth in May. This data has led to speculation that the Federal Reserve may take the time to lower interest rates, with traders not anticipating rate cuts in the upcoming Federal Open Market Committee meetings scheduled for this week or in July.

In Japan, investors are digesting the country’s revised first-quarter GDP figures, which revealed an annualized contraction of 1.8%. This is slightly better than the initially reported 2% contraction and below the 1.9% expected in a Reuters poll. On Friday, the Bank of Japan will announce its rate decision, while China and India will release their May inflation figures on Wednesday.

Japan’s Nikkei 225 climbed by 0.92% to close at 39,038.16, and the Topix index rose by 1% to 2,782.49 following the GDP report. However, South Korea’s Kospi dipped by 0.79% to 2,701.17, and the Kosdaq index slid by 0.17%, breaking a five-day winning streak and closing at 864.71. Several Asian markets, including Australia, mainland China, Hong Kong, and Taiwan, remained closed for a holiday on Monday.

After hitting an intraday record high, the S&P 500 ended the week flat on Wall Street. The Dow Jones Industrial Average saw a slight decline of 0.22%, while the Nasdaq Composite dropped by 0.23%. Despite these minor setbacks, all three major indices recorded a positive week, with the Dow gaining 0.29%, the S&P 500 rising by nearly 1.32%, and the Nasdaq advancing by 2.38%.

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The mixed performance of Asian markets reflects the cautious sentiment among investors as they analyze the implications of the strong U.S. jobs report and await key economic data releases and central bank decisions later in the week.

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