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What is the story about?
Asian equities climbed on Monday, August 10, tracking Wall Street's advance after Friday's session, which had been driven by weaker-than-expected US job data.
The Nikkei gained 1.29%, the Kospi rose 1.47%, while the Topix added 0.36%. Hang Seng futures pointed 0.5% higher, though S&P 500 futures slipped 0.2%.
The rally followed news that US employers had unexpectedly cut jobs in July, with hiring figures for the prior two months also revised downward.
The weak reading strengthened bets that the Federal Reserve would hold off on raising rates, with swaps data showing the odds of a September hike falling to around 43%, from 64% the previous week.
Also Read: Q1 Results This Week: PSU stocks, Bharat Forge, Vodafone Idea bring curtains down for the season
Treasury yields dropped in response, with two-year yields, most sensitive to Fed policy expectations, recording their steepest weekly fall since May. The dollar slid to a two-month low, a move that could offer Asian currencies room to strengthen.
The Japanese yen, having jumped sharply on Friday, traded slightly weaker near 157.90 per dollar in early Asian dealing, while the offshore yuan held steady around 6.7425.
On the geopolitical front, tensions over the Strait of Hormuz showed no sign of easing. Iran and Oman ended weekend talks without a final agreement to reopen the waterway, as Tehran reiterated a lengthy set of demands to Washington. This dimmed hopes of any imminent relief for oil and gas flows through the strait.
President Donald Trump, in an interview with Axios on Sunday, suggested the US was prepared to wait out Iran's economic strain rather than escalate militarily. This followed weeks of him threatening large-scale strikes on Iran before repeatedly holding back to allow room for negotiations.
Oil prices extended their advance amid the standoff. Brent crude rose 0.8% to trade above $84 a barrel, building on gains of more than 5% across the previous three sessions, while West Texas Intermediate added 0.6% to reach $78.67.
The US dollar, which has served as a safe haven through the conflict, held broadly steady against most Group-of-10 currencies.
Markets were also awaiting this week's US consumer price data, seen as a key test of the Fed's rate path following Friday's soft jobs report.
The Nikkei gained 1.29%, the Kospi rose 1.47%, while the Topix added 0.36%. Hang Seng futures pointed 0.5% higher, though S&P 500 futures slipped 0.2%.
The rally followed news that US employers had unexpectedly cut jobs in July, with hiring figures for the prior two months also revised downward.
The weak reading strengthened bets that the Federal Reserve would hold off on raising rates, with swaps data showing the odds of a September hike falling to around 43%, from 64% the previous week.
Also Read: Q1 Results This Week: PSU stocks, Bharat Forge, Vodafone Idea bring curtains down for the season
Treasury yields dropped in response, with two-year yields, most sensitive to Fed policy expectations, recording their steepest weekly fall since May. The dollar slid to a two-month low, a move that could offer Asian currencies room to strengthen.
The Japanese yen, having jumped sharply on Friday, traded slightly weaker near 157.90 per dollar in early Asian dealing, while the offshore yuan held steady around 6.7425.
On the geopolitical front, tensions over the Strait of Hormuz showed no sign of easing. Iran and Oman ended weekend talks without a final agreement to reopen the waterway, as Tehran reiterated a lengthy set of demands to Washington. This dimmed hopes of any imminent relief for oil and gas flows through the strait.
President Donald Trump, in an interview with Axios on Sunday, suggested the US was prepared to wait out Iran's economic strain rather than escalate militarily. This followed weeks of him threatening large-scale strikes on Iran before repeatedly holding back to allow room for negotiations.
Oil prices extended their advance amid the standoff. Brent crude rose 0.8% to trade above $84 a barrel, building on gains of more than 5% across the previous three sessions, while West Texas Intermediate added 0.6% to reach $78.67.
The US dollar, which has served as a safe haven through the conflict, held broadly steady against most Group-of-10 currencies.
Markets were also awaiting this week's US consumer price data, seen as a key test of the Fed's rate path following Friday's soft jobs report.
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