Japan Stocks Rise as Weak Jobs Data Lifts Hike Expectations
Key Summary
The Nikkei 225 jumped 2.5% on weak US jobs data, which pushed October Fed hike bets below 25%. The 10-year Treasury yield rose to 5.25%, nearing a two-decade high. The US stock market, including the Nasdaq composite (1.2% gain) and S&P 500 (0.7% gain), also rallied on the report. Meanwhile, chipmakers such as Tokyo Electron (5.2% rise) and Taiwan Semiconductor Manufacturing Co. (3% rise) surged on reports of talks with Elon Musk's Texas chip venture. However, the rally remains exposed to renewed volatility in the bond market, which is digesting heavier corporate borrowing for AI projects.
Japan Stocks Rise as Weak Jobs Data Lifting Hike Expectations
The Nikkei 225 index surged 2.5% on Monday following weak jobs data, which led to a decrease in bets on an October Federal Reserve rate hike.
The news also lifted Asian chip stocks, with rally gains seen in the sector.