Nikkei Jumps 2.5% on Weak Jobs Data and Bets the Fed Won't Hike

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.