Asian stocks rise as weak US jobs data dampens bets on Fed hike; Japan Jumps By Investing.com

Investing.com — Asian stocks rose Monday as weak U.S. jobs data reduced expectations of further rate hikes from the Federal Reserve, boosting technology stocks and easing pressure on bonds.

Japan led the region higher, jumping 2.5% to 69,986 and gaining 1.4% to 4,146.76. South Korea and mainland China remained closed for the public holiday, while Hong Kong’s was little changed at 23,981.50.

The Wall Street backdrop remained favorable, although US futures were weaker in Asian trading. The index had closed at a record high on Friday, while Nasdaq 100 futures fell 0.1% to 31,037.75 and also slipped 0.1% to 7,768.75.

The decline followed the release of Friday’s U.S. jobs report, which showed employers hired fewer workers than expected in September and wage growth slowed, prompting money markets to price in a less than 25% chance of a Fed hike in October.

Treasuries also remained supported, falling two basis points to 5.25%. The reprieve follows a prolonged bond sell-off driven by lingering concerns about inflation, government spending and heavier corporate borrowing to finance the development of artificial intelligence.

Japanese stocks rebound as technology leads gains

Japan’s Nikkei 225 jumped 2.6%, while the TOPIX gained 1%, with technology stocks benefiting from the broader improvement in risk appetite. The rally comes as investors reassess the interest rate outlook following weak U.S. jobs data.

rose about 3% following reports of a potential collaboration with Elon Musk’s Terafab, adding to the strength of the regional semiconductor sector. The gains also follow a record close for the Nasdaq 100 on Friday, reinforcing optimism around the broader AI trade.

Japan’s gains are not limited to semiconductors. shares rose 1% after the company agreed to acquire Akzo Nobel’s Southeast Asia unit in a deal valued at $1.35 billion, underscoring the company’s renewed activity alongside the broader market recovery.

Elsewhere, Hong Kong’s Hang Seng rose slightly, while Singapore’s gained 0.3%. Trade between Australia and New Zealand is stable.

That of India rose to 22,430.70. The rose 0.1% to 71,961.20, while the broader fell 0.1%.

Oil retreats as Yemen conflict reshapes supply risks

Oil regained an early lead, with delivery for December down 0.6% at around $101.60 a barrel after climbing above $103 earlier in the session.

Prices had initially risen after Saudi-backed forces in Yemen launched an operation to retake territory controlled by the Iran-aligned Houthis.

The pullback came as markets weighed the possibility that the latest developments could change regional supply risks, while investors continued to assess the impact of the conflict on energy flows.

The combination of weaker U.S. jobs data, lower bond yields and a renewed tech rally has improved risk appetite across Asia, although high long-term yields, concerns in European bond markets and geopolitical risks continue to leave markets vulnerable to renewed volatility.