Japan's Nikkei 225 surged about 2.5% in Monday trading and briefly cleared 70,000 for the first time in three months. The rally followed a US jobs report that came in far below expectations, easing pressure on the Federal Reserve to raise interest rates again this year.
The benchmark index's move came as Nasdaq futures slipped 0.1% in Asian hours, after the tech-heavy Nasdaq 100 closed at a record high on Friday. The S&P 500 ended that session 0.7% higher, with the Nasdaq composite up 1.2%.
Weak hiring data shifts rate expectations
September's net hiring totaled just 29,000, a sharp drop from August's 133,000 and well short of forecasts. The soft print pushed money markets to price in less than a 25% chance of an October rate hike from the Federal Reserve, a notable shift from the near-certainty seen just weeks ago.
The cooling rate-hike odds helped the 10-year Treasury yield recover to 5.28% after an intraday low below 5.17%. The yield had peaked near 5.35% on Thursday, bringing longer-term yields close to two-decade highs. Investing.com attributed part of the recent bond selloff to heavier corporate borrowing for artificial intelligence projects.
Tokyo's chip and tech names lead the charge
In Tokyo, chip-equipment maker Tokyo Electron rose 5.2% in afternoon trading, while SoftBank Group gained 3.1%. Taiwan Semiconductor Manufacturing Co. climbed about 3% on reports of talks with Terafab, Elon Musk's planned Texas chip venture. Musk has confirmed the discussions, but no deal has been announced.
The gains in Tokyo came despite mainland Chinese and South Korean markets being shut for public holidays. Hong Kong's Hang Seng sat near 23,976.
Oil holds above $100 as Middle East tensions persist
Brent crude traded near $101 a barrel after briefly topping $103, supported by a Saudi-backed push against Yemen's Iran-aligned Houthis. The elevated oil price adds another layer of uncertainty for investors weighing inflation and growth prospects.
What to watch
With the weak US jobs number in hand, traders will now look to the Fed's next meeting in October. The odds of a hike have fallen sharply, but the central bank's decision will depend on incoming data. In Japan, the Nikkei's close above 70,000 — if it holds — could set the tone for the rest of the week. And the TSMC-Terafab talks, while still unconfirmed on paper, are already moving chip stocks.
