Asian stocks drop on strong US jobs data

Asian stocks fell and the dollar reached 14-month highs on Monday following a strong payrolls report that raised bond yields and challenged high equity valuations as earnings season began.

The hawkish surprise also increased the importance of the US consumer price data on Wednesday. If the core inflation rate rises more than the expected 0.2 per cent, it could signal an end to any further easing measures.

A holiday in Japan led to light early trading on Monday. MSCI’s Asia-Pacific shares index outside Japan edged down 0.4 per cent. The Nikkei was closed, but futures traded lower at 38,430, compared to the previous cash close of 39,190.

South Korean stocks dropped 1.0 per cent as uncertainty looms over the political situation. The Constitutional Court will decide the fate of impeached president Yoon Suk Yeol in a hearing starting on Tuesday.

Chinese blue chips were down 0.2 per cent despite a 10.7 per cent increase in exports and a one per cent rise in imports.

Oil prices rose due to supply worries as Russia’s seaborne exports dropped to their lowest level since August 2023. Brent increased to $80.94 a barrel, and US crude rose to $77.84 per barrel.

Attribution: Reuters

Subediting: Y.Yasser