November 8, 2021

Asian Stocks Soar Following Momentum of US NFP Jobs Report

 Asian stocks surged on Monday as risky assets were weighed down by a buoyant October earnings report in a cautious market ahead of the US inflation data report to be released this week.

Congressional approval of the long -delayed $ 1 trillion infrastructure bill has pleased investors even though the broader social safety net plan remains elusive.

This morning saw the MSCI index move for moderate Asia-Pacific stocks outside Japan up 0.1%. Japan’s Nikkei rose 0.3% even less than its recent five-week high.

The Nasdaq was down 0.2% after rising 10 consecutive sessions earlier while the S&P 500 was down 0.1%.

The encouraging U.S. NFP jobs data report on Friday saw a bullish revision to the previous few months and another strong reading for the earnings component.

Analysts noted an alternative measure of truncated core average inflation had increased significantly at 3.6% annually.

U.S. treasury yields declined lower until last weekend and last recorded 1.46%.

The decline showed little pressure on the U.S. dollar which has hit a one -year high after the jobs report was published. The dollar index hovered around 94.290 after declining slightly from 94.634.

The surprise decision by the Bank of England (BoE) at last week’s policy meeting has made the value of Sterling depreciate 1.4% from last week’s trade at $ 1.3489 while the value of the Euro hit a stable level after 16 months at $ 1.1563.

The US dollar, which is having a lot of trouble keeping up against the Japanese Yen, saw the level around 113.25 remain a price support zone.

The decline in bond yields gave gold an advantage in that it did not offer a fixed return and raised it to $ 1,815 per ounce.

Developments for the crude oil market, oil prices strengthened after OPEC+ rejected US calls to accelerate production increases despite demand approaching pre-pandemic levels.

Saudi Aramco also increased its official selling price of crude oil to all buyers around the world.

Brent oil prices rose 22 cents to $ 82.96 a barrel while US crude oil prices rose 34 cents to $ 81.61 a barrel.