Nikkei leads gains in Asia markets, mirroring global sentiment after strong U.S. job report
Asia-Pacific markets rose on Monday, led by Japan's Nikkei 225, which gained nearly 2% amid anticipation of central bank policy announcements. The yen weakened past 149 per dollar, boosting Japan's export outlook. Key central banks, including the Bank of Korea and Reserve Bank of New Zealand, are set to announce interest rate decisions this week. Meanwhile, Hong Kong's market surged 1.36%, and Australia’s AS51 rose 0.69%. Investors await U.S. Fed meeting minutes and CPI report for further market direction, with earnings reports from major companies also on the horizon.
Asia-Pacific markets trade higher on Monday, with Japan's Nikkei 225 index rising nearly 2% as investors anticipated a week of central bank policy announcements across the region.
Three central banks in Asia-Pacific are set to release their interest rate decisions this week, namely the Bank of Korea, Reserve Bank of New Zealand and Reserve Bank of India.
The Japan (NKY:IND) rose +2.33% to above 39,000 on Monday, climbing for the third straight session as the yen weakened sharply, lifting the profit outlook for Japan’s export-heavy industries. The Japanese yen weakened past 149 per dollar.
Meanwhile, top Japanese officials advocated for caution from the Bank of Japan before raising interest rates further.
Reserve assets in Japan increased to $1.25 trillion in September 2024 from $1.24 trillion in August, hitting the highest level since April.
Nintendo shares recorded a gain of as much as 3.8%, after Saudi Arabia’s PIF was reported to be considering raising its stake in the company and other Japanese gaming counterparts.
China (SHCOMP) market closed. Markets in mainland China remain closed until Oct. 8. The offshore yuan stabilized at around 7.09 per dollar after falling to a more-than-one-week low last week, as China's National Day holiday neared its end.
Hong Kong (HSI) surged +1.36% to 22,862 in early trade on Monday, extending gains from the prior session as traders keenly awaited the return of Chinese investors from a week-long holiday.
India (SENSEX) +0.17%.
Australia (AS51) rose +0.69% to above 8,180 on Monday, recouping some losses from the previous session, with mining and financial stocks leading the rebound.
The Melbourne Institute's Monthly Inflation Gauge edged up 0.1% in September 2024 after easing by 0.1% in the previous month.
Meanwhile, investors now await the Reserve Bank of Australia’s meeting minutes for insights into the central bank’s interest rate path.
In the U.S., on Friday, all three major indexes ended higher as a solid US jobs report tempered expectations for Federal Reserve interest rate cuts.
U.S. stock futures were little changed on Monday as investors look for fresh market catalysts in the week ahead: Dow -0.06%; S&P 500 -0.05%; Nasdaq -0.02%.
Markets are now awaiting the latest Fed meeting minutes on Wednesday and the consumer price index report on Thursday for further guidance. Traders also look forward to the start of earnings season.
On the corporate front, earnings are set to come this week from PepsiCo, Delta, BlackRock, JPMorgan Chase and Wells Fargo, among others.
Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).
More on Asia:
Japan appears to be on the path of a sustainable rebound – Vanguard
Australia's trade surplus hits 4-month high despite slight declines in both exports and imports
- Japan's unemployment rate fell to 2.5% in August, better than expected of 2.6%
- Japan's manufacturing PMI revised upward to 49.7 in September
- Australia retail sales growth rises to 0.7% M/M in August, beats estimates