- Asian shares saw a rise on Monday after Wall Street ended last week with the stock market’s best day in over two months, backed by cooler-than-expected U.S. employment data.
- The Japanese yen weakened slightly after its value swung from a low of 160.25 to the U.S. dollar to 151.86 late last week following suspected government intervention.
- Markets reopened after a weeklong holiday with the Hang Seng in Hong Kong losing 0.2% to 18,447.12 while the Shanghai Composite index rose 0.9% to 3,133.92.
Asian markets rally following Wall Street’s best day in over two months, supported by cooler U.S. employment data and government intervention in Japan.
Asian Shares Rise Following Wall Street’s Rally
Asian shares were mostly higher on Monday, following Wall Street’s best day in over two months. This rally was backed by the cooler-than-expected U.S. employment data. The Japanese yen weakened slightly after its value swung from a low of 160.25 to the U.S. dollar to 151.86 late last week, following suspected government intervention. Japanese Finance Minister Shunichi Suzuki expressed concern over rapid fluctuations hurting households and businesses.
Market Reopens After Weeklong Holiday
Markets reopened after a weeklong holiday with mixed results. The Hang Seng in Hong Kong lost 0.2% to 18,447.12 while the Shanghai Composite index rose 0.9% to 3,133.92. A private sector survey showed the country’s services sector grew at a slower pace in April due to rising costs, although new orders rose and business sentiment improved. Australia’s S&P/ASX 200 rose 0.5% to 7,669.50, and Taiwan’s Taiex gained 1.2%.
U.S. Employment Data Impacts Global Markets
The U.S. employers added 175,000 jobs last month, down sharply from the blockbuster increase of 315,000 in March, according to the Labor Department. This hiring tally came in well below the 233,000 gain that economists had predicted. Meanwhile, average hourly earnings, a key driver of inflation, rose less than expected. The modest increase in hiring last month suggests the Federal Reserve’s aggressive streak of rate hikes may be finally starting to take a bigger toll on the world’s largest economy.
Conclusion
The rise in Asian shares following Wall Street’s rally indicates the global impact of U.S. economic data. The cooler-than-expected U.S. employment data and government intervention in Japan have influenced the markets, leading to a rally. However, the slower growth in the services sector due to rising costs is a concern. The global markets will continue to be influenced by these factors in the future.
