Asia-Pacific Markets Mixed With Nikkei 225 Jumps Nearly 2%

Asia-Pacific Markets Mixed With Nikkei 225 Jumps Nearly 2%

Asia-Pacific markets mixed with Nikkei 225 jumps nearly 2%. On Monday, Asia-Pacific stocks traded mixed after the release of Friday’s U.S. jobs data that came in far short of expectations.

Japan’s Nikkei 225 rose 1.75% in afternoon trade after Japanese Prime Minister Yoshihide Suga announced that he will not be running in the upcoming leadership election. The Topix surged 1.24%.

Mainland Chinese stocks jumped with the Shanghai composite adding 1.02% and the Shenzhen component rose 2.164%. Hong Kong’s Hang Seng index advanced 0.51%.

South Korea’s Kospi traded lower. In Australia, the S&P/ASX 200 dropped 0.33%.

MSCI’s broadest index of Asia-Pacific shares outside Japan surged 0.45%.

Thailand’s SET Composite index sat fractionally lower on Monday after the Prime Minister Prayut Chan-o-cha and other cabinet ministers survived a vote of no confidence in parliament on Saturday.

Friday’s U.S. jobs data showed the economy added just 235,000 positions in August.

released Friday came in far short of expectations, with the economy adding just 235,000 positions in August. Economists surveyed by Dow Jones had forecasted 720,000 new hires.

Meanwhile, the unemployment rate dropped to 5.2% from 5.4%.

“In our view, the setback in the recovery in the labour market and the jump in serious covid infections will encourage the FOMC to wait before it announces it will taper its monthly asset purchases. We now expect the FOMC to announce an $US10bn taper of its monthly asset purchases at its 3 November meeting,” analysts at Commonwealth Bank of Australia wrote in a Monday note.

Oil prices declined in the afternoon of Asia trading hours, with international benchmark Brent crude futures dropped 1.12% to $71.80 per barrel. U.S. crude futures tumbled 1.07% to $68.55 per barrel.