{"id":15264,"date":"2024-10-07T02:23:33","date_gmt":"2024-10-07T02:23:33","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=15264"},"modified":"2024-10-07T02:23:33","modified_gmt":"2024-10-07T02:23:33","slug":"u-s-labour-data-lifts-dollar-asian-stocks","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/u-s-labour-data-lifts-dollar-asian-stocks\/","title":{"rendered":"U.S. Labour Data Lifts Dollar &amp; Asian Stocks"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Key Points:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Nikkei rallied 2% while MSCI\u2019s Asia-Pacific index gained 0.4%.<\/li>\n\n\n\n<li>U.S. Treasury yields rose as rate-cut expectations shift following U.S. job data.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Asian Stocks Rally on Strong U.S. Labour Data<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Asian stocks climbed on Monday following strong U.S. labour data, which dispelled fears of a potential recession and prompted investors to pare back their expectations for a Federal Reserve rate cut. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The closely watched <strong>non-farm payrolls report<\/strong> revealed that the U.S. economy added the highest number of jobs in six months, supporting risk-on sentiment across global markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Japan\u2019s <strong>Nikkei 225<\/strong> led the regional rally, rising by 2%, as a softer yen against the U.S. dollar added momentum to Japanese equities. The dollar surged to <strong>149.10 yen<\/strong>, the highest level since August 16, before stabilising around <strong>148.87 yen<\/strong>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This followed the U.S. dollar\u2019s broad strength in the wake of last Friday\u2019s data. Japan\u2019s top currency official mentioned they would monitor exchange rate movements, particularly speculative trading, which could influence further intervention.<\/p>\n\n\n\n<figure class=\"wp-block-image is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/10\/image-3.jpeg\" alt=\"\" class=\"wp-image-15265\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Nikkei 225 consolidates after hitting 39,833 resistance, with short-term momentum showing signs of slowing, as seen on the <\/em><em><a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\">VT Markets app.<\/a><\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Based on the chart above, we can see that the Nikkei is approaching its resistance at <strong>39,833.65<\/strong>, with a flattening <strong>MACD<\/strong> suggesting a potential short-term pullback. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Watch for a breakdown below <strong>39,300<\/strong>, or a breakout above resistance for continued bullish momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In other Asian markets, <strong>Australia\u2019s ASX 200<\/strong> edged higher by <strong>0.12%<\/strong>, and South Korea\u2019s <strong>KOSPI<\/strong> gained <strong>0.29%<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Shifts in U.S. Treasury Yields and Dollar Strength<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The U.S. job report also reshaped expectations around the Federal Reserve&#8217;s November meeting. Rate-cut bets for a 50-basis-point reduction fell sharply, with traders now pricing a <strong>95% chance of a 25-basis-point cut<\/strong>, reflecting growing confidence in the resilience of the U.S. economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the bond market, the <strong>two-year U.S. Treasury yield<\/strong> rose by <strong>1.7 basis points<\/strong> to reach <strong>3.9488%<\/strong>, marking its highest level in over a month. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You might also like: <a href=\"https:\/\/www.vtmarkets.com\/analysis\/dollar-strengthens-on-solid-u-s-job-data\/\">Dollar Strengthens on Solid U.S. Job Data<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This reflects reduced expectations for aggressive rate cuts and a strong labour market, both of which contribute to higher yields.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Federal Reserve Chair Jerome Powell said Monday the central bank intends to do what it takes to keep the economy &quot;in solid shape,&quot; but that it is no rush and likely to cut interest rates in smaller increments going forward. <a href=\"https:\/\/t.co\/1XWjl0qTp1\">https:\/\/t.co\/1XWjl0qTp1<\/a> <a href=\"https:\/\/t.co\/gJMlRMuCrT\">pic.twitter.com\/gJMlRMuCrT<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1842921182368010612?ref_src=twsrc%5Etfw\">October 6, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Commodities Face Mixed Outcomes Amid Geopolitical Risks<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Meanwhile, commodity markets faced mixed results. <strong>Gold(XAUUSD)<\/strong> edged slightly lower, down by <strong>0.1%<\/strong> to <strong>$2,849.29 an ounce<\/strong>, holding near its recent record highs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The precious metal&#8217;s slight decline can be attributed to the increased strength of the U.S. dollar and higher Treasury yields, which dampened demand for safe-haven assets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Crude oil<\/strong> prices eased from last week\u2019s highs, despite ongoing geopolitical risks in the Middle East. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Brent crude<\/strong> futures fell <strong>65 cents<\/strong> to <strong>$77.40 per barrel<\/strong>, while <strong>West Texas Intermediate (WTI)<\/strong> declined <strong>53 cents<\/strong> to <strong>$73.85 per barrel<\/strong>. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tensions in the Middle East continue to weigh on the market, but traders are also considering the possibility of stable supply amid these geopolitical risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Key Focus: Upcoming U.S. Data and Fed Decisions<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As markets continue to digest the implications of the U.S. labour data and upcoming Federal Reserve decisions, focus remains on how these factors will influence global equity markets and safe-haven demand. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The shift in rate-cut expectations, alongside ongoing geopolitical risks, will likely keep investors on high alert for future market-moving data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Start trading now \u2014 click <\/strong><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\">here<\/a><\/strong><strong> to create your live VT Markets account.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Strong U.S. labour market data pushed Asian equities higher. Traders are recalibrating rate-cut expectations after the unexpected payrolls surge. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[28,37,33],"class_list":["post-15264","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-dollar","tag-nikkei","tag-stocks"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=15264"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/15264\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=15264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=15264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=15264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}