In the currency market, the U.S. dollar is trading in the 142 yen-range
Asian stock markets are trading mixed on Monday, after the broadly negative signals from Wall Street on Friday, as traders responded to data showing less than expected employment growth in the U.S. and Canada in July, which eased concerns about the outlook for interest rates and increased expectations the central banks will soon end their policy tightening. Most economists still expect another pause in interest rate hikes. Asian markets finished mostly higher on Friday.
With the labour market very resilient, wages increasing solidly, and core inflation well above the Federal Reserve’s target, odds are better than 50-50 that the Federal Reserve makes another quarter percentage point rate hike in H2 2023, most probably at the Fed’s November 1 decision, said Bill Adams, Chief Economist for Comerica Bank.
The Australian stock market is a bit lower on Monday, giving up the gains in the earlier session, with the benchmark S&P/ASX 200 staying above the 7,300 mark, after the broadly negative signals from Wall Street on Friday, weighed down by weakness in iron miners and financial stocks.
The benchmark S&P/ASX 200 Index is declining 26.70 points or 0.36 percent to 7,298.60, after reaching a low of 7,297.90 earlier. The broader All Ordinaries Index is 25.30 points or 0.34 percent lower to 7,510.60. Australian stocks finished modestly up on Friday.
The Japanese stock market is trading relatively flat with a negative bias on Monday, after the marginal gains in the earlier session, with the Nikkei 225 staying above the 32,100 mark, after the broadly negative signals from Wall Street on Friday, with weakness across most sectors, led by technology stocks and index heavyweights.
The benchmark Nikkei 225 Index finished the morning session at 32,190.31, down 2.44 or 0.01 percent, after reaching a low of 31,830.23 earlier. Japanese shares closed marginally higher on Friday.
In the currency market, the U.S. dollar is trading in the 142 yen-range on Monday.
New Zealand, China and Hong Kong are lower by between 0.1 and 0.5 percent each, while Singapore, Malaysia, Taiwan and Indonesia are higher by between 0.1 and 0.8 percent each. South Korea is comparatively flat.
On Wall Street, stocks saw considerable volatility during Friday trading, as traders digested the Labor Department’s closely followed monthly jobs report. The major averages showed wild swings across the unchanged line.
The major averages finally ended the day in negative territory. The Dow declined 150.27 points or 0.4 percent to 35,065.62, the Nasdaq dropped 50.48 points or 0.4 percent to 13,909.24 and the S&P 500 slipped 23.86 points or 0.5 percent to 4,478.03.