Asian Stocks Rise as Softer US Jobs Data Boosts Fed Cut Bets – Asia Market Wrap
Asian equities advanced alongside Treasuries after softer US employment data reinforced expectations that the Federal Reserve will move to cut interest rates soon. The MSCI Asia Pacific Index rose 0.4%, with technology stocks rebounding from early losses. Futures for the Nasdaq 100 gained a similar amount after Advanced Micro Devices surged 4.8% in extended trading on projections for faster sales growth. European stock contracts also pointed to a higher open.
ADP Research data showed the US labor market cooled in the latter half of October, sending bond yields lower across maturities. The 10-year Treasury yield declined three basis points to 4.08% as traders boosted wagers on a rate reduction next month — with markets now pricing in about a 70% probability. The dollar inched higher after a five-day slide, while gold edged lower.
The prolonged government shutdown has heightened reliance on private indicators such as ADP’s report, with investors deprived of official readings on employment and inflation. The closure, now poised to end as early as Wednesday, lifted sentiment after the Senate approved a temporary funding measure. Traders are preparing for a wave of delayed data once federal agencies resume operations.
According to ADP, US companies cut an average of 11,250 jobs per week in the four weeks through October 25. The firm’s monthly report, released last week, showed private-sector payrolls rose by 42,000 in October following two months of declines.
Elsewhere, the International Energy Agency softened its forecast of an imminent peak in oil demand, reinstating a longer-term outlook in which global consumption continues to expand through the middle of the century.
