World · Singapore Bureau
Asian equities gain as softer US jobs data eases rate-hike worries
Regional stock markets moved higher following weaker-than-expected US employment figures that have dampened expectations for aggressive interest rate increases. The positive sentiment reflected broader relief in global equity markets as investors reassess monetary policy trajectories.
LSN Singapore ·
Stock markets in South and Southeast Asia advanced on the back of softer US labour market data, which has alleviated concerns about sustained aggressive monetary tightening. The employment figures released from the United States fell short of expectations, prompting a reassessment of the Federal Reserve's likely policy direction and supporting risk appetite among investors across the region.
US equities led the rally, with the Dow Jones Industrial Average climbing 250.40 points, or 0.49%, to close at 51,176.96. The gains reflected optimism that moderating labour market momentum could allow central banks to pause or ease their tightening cycles, a development that typically supports equity valuations and reduces borrowing costs for businesses and consumers.
The weaker jobs data has shifted market expectations away from predictions of additional rate hikes, a shift that has reverberated through Asian markets where many economies are sensitive to US monetary policy shifts. Lower interest rate expectations typically boost equity valuations by reducing discount rates applied to future corporate earnings and making equities more attractive relative to fixed-income investments.
Market participants will continue to monitor upcoming economic data for further signals on the health of labour markets and the inflation outlook. The softer employment report adds to a body of recent economic indicators suggesting that monetary tightening may be having its intended cooling effect on demand.