June 05, 2023 (MLN): Asian equities on Monday built on a global rally after a mixed US jobs report lifted hopes the Federal Reserve will hold off hiking interest rates this month, as APP reported.

The figures combined with news that Washington had finally passed a debt ceiling deal to avert a catastrophic default, while a report that China is looking at fresh support for its property sector also boosted sentiment.

Meanwhile, oil prices extended a rally after Saudi Arabia announced a surprise output cut citing the need to stabilise the market.

Wall Street surged Friday after data showed the US economy added 339,000 jobs last month, far more than expected, indicating the labour market remained strong despite more than a year of Fed rate increases.

However, the report also revealed wage gains moderated slightly, putting less pressure on inflation.

Analysts said the "Goldilocks" reading, neither too good nor too bad, suggested the economy was not facing an immediate risk of a recession and could still give the Fed room to hold policy steady.

Asian traders welcomed the news, with Hong Kong extending Friday's four percent surge, while Tokyo piled on more than one percent along with Sydney and Singapore.

Shanghai was helped by a Bloomberg News report that China was looking at measures to help its beleaguered property sector, which accounts for a huge portion of its economy.

Seoul, Taipei, Manila and Jakarta also rose.

The latest advances across equities have come as investors bet the Fed will not tighten monetary policy at its meeting next week, though expectations are it will do so in July.

The central bank has lifted rates 10 times since early last year.

"A combination of a US debt ceiling resolution alongside a mixed US jobs report, still favouring a June Fed pause, and news that China may be considering further support to its beleaguered property sector boosted risk sentiment," said National Australia Bank's Rodrigo Catril.

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Posted on: 2023-06-05T11:31:47+05:00