IMF Says Global Bond Markets Remain Orderly Despite Yield Surge 
Europe EV Sales Hit Record as Affordable Models Boost Demand 
RBI Rate Hike Bets Surge as Inflation Rises 
US Stock Futures Rise as Weak Jobs Data Eases Fed Hike Bets 
Middle East Oil Exports Recover as Tanker Costs Surge 
OPEC+ Expected to Hold November Oil Output Quotas Steady 
Oil Prices Hold Steady as Middle East Supply Risks Persist 
Fed’s Hammack Says More Data Needed Before Next Rate Move 
Scope Warns US Debt Could Hit 160% of GDP 
Asian Stocks Fall as US Jobs Data and Oil Risks Rattle Markets 
Gold Prices Rise as Weak US Jobs Data Cuts Fed Hike Bets 
Bank of America Sees EUR/USD at 1.15 by Year-End 
G20 Divided Over US Push to Curb Industrial Overcapacity 
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Asian stocks climbed on Monday as weaker U.S. employment data reduced expectations for another Federal Reserve interest rate hike this month, although elevated Treasury yields and persistent inflation concerns supported the dollar.
Trading volumes were subdued due to holidays in China, South Korea and Australia’s New South Wales. Still, regional markets followed Wall Street higher after Friday’s U.S. jobs report showed employment growth slowed more than expected in September. Payroll figures for the previous two months were also revised sharply lower.
Markets now see less than a 20% probability of a Fed rate hike this month, down from 64% a week earlier, according to the CME FedWatch tool. Traders, however, continue to price in the possibility of another increase in December.
Japan’s Nikkei jumped 2.5%, while MSCI’s broad Asia-Pacific index excluding Japan gained 0.9%. Nasdaq futures advanced 0.17%, while S&P 500 futures were little changed. EUROSTOXX 50 futures rose 0.3% and FTSE futures added 0.4%.
Brazilian assets were also in focus after Senator Flavio Bolsonaro performed better than expected in the first round of the presidential election and advanced to a runoff against President Luiz Inacio Lula da Silva.
Despite fading Fed hike expectations, the U.S. dollar strengthened. The euro dropped 0.6% to $1.1185, its lowest level in 17 months, amid growing concerns over France’s fiscal outlook. The dollar gained 0.12% against the yen to 158.01, while sterling slipped 0.25% to $1.3205.
U.S. Treasury yields eased slightly but remained historically elevated. The benchmark 10-year yield stood at 5.2579%, while the two-year yield was around 4.8059%. High government borrowing, increased bond issuance and elevated energy costs continued to pressure debt markets.
Oil prices declined as stronger Middle East crude exports and planned G7 emergency reserve releases improved supply expectations. Brent crude fell 0.7% to $101.52 a barrel, while U.S. crude dropped more than 1% to $90.11.
Spot gold was broadly steady at $4,143.82 an ounce as investors balanced weaker U.S. labor data against high bond yields and geopolitical uncertainty.
