By Kevin Buckland
TOKYO, July 5 (Reuters) – Most Asian stocks rose on Monday, continuing the rally that took global stocks to an all-time high after a US jobs report signaled that the economic recovery remained intact but did not did not yet justify an immediate withdrawal of the Federal Reserve’s stimulus measures. .
Japanese markets, however, turned the tide, with the Nikkei falling 0.5% following an increase in COVID-19 infections in Tokyo, just weeks before the city hosted the Olympics.
The largest MSCI index for Asia-Pacific equities excluding Japan rose 0.3%, led by a 1% gain in Taiwan. Chinese blue chips added 0.1%.
Trading is expected to be thinner than usual, with US markets closed for the extended July 4th weekend, meaning that “some of these upward moves could be capped and price action could be unstable, “according to Kyle Rodda, market analyst at IG Melbourne.
“But given Friday’s nonfarm payroll numbers, things are still really, really bullish, and I think you’ll start to see that happen again as the week goes on,” Rodda said.
“The conditions are right for stocks to continue to climb all over the world.”
The MSCI All Country World Index closed at a record 724.66 last week and edged up 0.1% on Monday.
Futures on the S&P 500 were down 0.1% for Tuesday’s open, after the index closed 0.8% higher at a record 4,352.34 on Friday. The Dow Jones Industrial Average rose 0.4% and the Nasdaq Composite added 0.8% to hit a record.
The non-farm payroll in the United States increased 850,000 jobs more than expected last month. But the unemployment rate unexpectedly rose to 5.9% from 5.8%, while the closely watched average hourly wage, an indicator of wage inflation, rose 0.3% last month, lower than the consensus forecast of a 0.4% increase.
“The feeling of a golden loop suggests that there is no need to accelerate the reduction schedule or the implied rate hike profile,” wrote Tapas Strickland, an analyst at the National Australia Bank, in a note. customer.
Overall, the wage bill is still 6.8 million below pre-pandemic levels in February 2020 and is still below the level of substantial progress required by the Fed. As such, it There is nothing in this report for the Fed to become hawkish. “
All eyes will be on the minutes of the Federal Open Markets Committee meeting last month, when policymakers surprised markets by reporting two rate hikes by the end of 2023.
Comments from Fed officials since then have been more balanced, especially from President Jerome Powell, and investors will analyze Wednesday’s post for further clues about the timing of the policy tightening.
US bond markets were closed for the holidays after the benchmark 10-year US Treasury yield fell to 1.4306%.
The dollar was broadly stable on Monday after falling from a three-month high at the end of last week, under pressure from weaker details of the US non-farm wage report.
The greenback was little changed at 111.055 yen and $ 1.18615 per euro.
Gold edged up 0.1% to $ 1,789.46 an ounce.
Crude oil slipped as OPEC + talks dragged on. The Saudi Energy Minister on Sunday fended off opposition from another Gulf producer, the United Arab Emirates, to a draft OPEC + deal and called for “compromise and rationality” to reach a deal when the group will meet again on Monday.
Brent crude fell 29 cents to $ 75.88 per barrel, and US crude fell 24 cents to $ 74.92 per barrel.
(Edited by Sam Holmes)