Asian Markets Rally on Strong U.S. Payrolls and China Stimulus Expectations
Asian stocks rose on Monday, led by gains in Japanese markets. Strong U.S. payroll data eased concerns over an economic slowdown, while anticipation of more stimulus measures from China lifted regional sentiment.
U.S. Payroll Data Boosts Investor Confidence
A stronger-than-expected U.S. nonfarm payroll report released on Friday propelled a Wall Street rally, setting a positive tone for Asian markets. This upbeat U.S. economic data dispelled concerns over a potential recession but tempered hopes of aggressive interest rate cuts. Trading volumes in Asia were somewhat limited due to China's Golden Week holiday, but optimism is high for a surge in Chinese markets once they reopen on Tuesday.
Japanese Markets Lead Gains Amid Yen Decline
Japan’s Nikkei 225 and TOPIX indexes outperformed, rallying between 1.8% and 2%. A weaker Japanese yen contributed to these gains, as skepticism grew over the Bank of Japan's ability to further raise interest rates. Seven & I Holdings Co., the parent company of 7-Eleven, surged over 3% on news that it plans to sell a stake in its supermarket unit ahead of a potential listing. Additionally, Canadian firm Alimentation Couche-Tard Inc. reportedly received support from Quebec’s public pension fund to pursue a takeover bid for Seven & i.
Hong Kong Stocks Up; China Stimulus in Focus
Hong Kong’s Hang Seng index added 0.6%, continuing its recent upward trend as hopes for further Chinese stimulus attracted investors to discounted mainland stocks. When mainland Chinese markets reopen on Tuesday, they are expected to see sharp gains driven by additional economic support measures announced by China’s top economic planner.
Broader Market Trends and U.S. Developments
Optimism over China's economic outlook bolstered broader Asian markets, with South Korea’s KOSPI rising 0.8% and Australia’s ASX 200 climbing 0.5%. Futures for India’s Nifty 50 index pointed to a relatively muted open following recent declines. Meanwhile, global markets are also closely watching U.S. Federal Reserve speeches and upcoming inflation data, as traders reduce expectations of significant interest rate cuts by the Fed.


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