Asian shares started the week on a positive note today (October 5th) after a weak US employment report released on Friday sparked speculation that the US Federal Reserve might delay an interest rate hike.
The US nonfarm payrolls report for September showed the employers created 142,000 jobs, below the expected 203,000 in a Reuters forecast.
Unemployment remained steady at 5.1 per cent, according to the Labor Department. Investors took the lower-than-expected jobs data as a sign the Fed is unlikely to begin tightening monetary policy soon.
According to CNBC, Fed funds futures are now pricing the first rate hike to come no earlier than March 2016.
Hong Kong's Hang Seng jumped 1.6 per cent to 21,796.32 and Tokyo's Nikkei 225 soared 1.6 per cent to 18,005.49. Australia's S&P/ASX 200 gained two per cent to 5,150.50 and South Korea's Kospi added 0.4 per cent to 1,978.25. Markets in mainland China are closed for holidays until Thursday.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.