- Asian stocks except Japan’s Nikkei index are flashing green.
- Friday’s upbeat US jobs data eased recession fears.
- The US-China trade negotiations are scheduled on Oct. 10-11.
Asian stocks except Japan’s Nikkei are flashing green Monday morning as Friday’s US jobs data eased concerns of a deeper economic slowdown in the world’s largest economy.
As of writing, Australia’s S&P/ASX 200 is reporting a 0.40% gain and South Korea’s Kospi is up 0.10%. Meanwhile, shares in New Zealand are trading flat while those in Japan are flashing moderate losses.
Notably, Japan’s Nikkei is currently reporting a 0.32% drop, despite the weakness in the Yen. At press time, the USD/JPY pair is trading at 106.83, having hit a low of 106.63 in the early Asian trading hours.
The US stocks rose and the Treasury yields inched higher on Friday after the US Nonfarm Payrolls data showed unemployment rate fell to 3.5% in September to reach the lowest since December 1969. Non-farm payrolls also grew in September, but slightly less than expected.
The data calmed US recession fears triggered by September’s disappointing manufacturing and services data.
Focus on trade talks
The next round of US-China trade negotiations are scheduled to happen in Washington on Oct. 10-11. The year-long trade war has taken a toll on both countries and also on export-dependent economies like Germany, South Korea, and Japan.
While the US President Trump is insisting that any deal has to be 100%, the Chinese officials are reportedly reluctant to pursue a broad deal.
Put simply, a breakthrough deal is unlikely and the bar of expectations has been set low. So, any easing of tensions could bode well for equities in the short-term.
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