Asian stocks rally as US jobs growth blow past forecasts

Stock markets across Asia rallied today after a stellar US non-farm payrolls report eased concerns regarding the health of US economy, although post Brexit melee kept bond yields on the back foot.

At the time of writing, Japan’s Nikkei index was up 3.47%. Australia’s S&P/ASX 200 was up 1.73% and Hong Kong’s Hang Seng was trading higher by 1.8%. South Korea’s Kospi was up 1.13%.

Shares in Asia took cues from the US stocks which flirted with record highs on Friday after the US data showed economy added 287,000 jobs last month, well above median forecasts. The data calmed market nerves about the labor market, but at the same time was not strong enough to push up the Fed rate hike bets.

The data docket is thin today. Over the week we have a number of Fed officials scheduled to speak. We also have a Bank of England (BOE) rate decision on Thursday. Markets expect the BOE to strongly indicate more easing in August.