Asian stocks fell as bonds rally

The stock markets across dropped this Monday morning following Friday’s Us dismal jobs report and heightened geopolitical tensions - Terror attack in London, Gulf crisis. 

At the time of writing, Australia’s S&P/ASX 200 index was down 48 points or 0.83%. Hang Seng was down 50 points or 0.19%. The Shanghai Composite Index slipped 0.3%. Japan’s Nikkei index was trading flat. 

US and Australian bonds rallied as wage growth and hiring strength in the American labor market came in below forecasts. The yield on the Australian government bonds fell to a seven-month low, as did the treasury yields on Friday. 

The British Pound slipped, while gold strengthened after weekend’s terror attacks in London. Tensions are also on the rise in the Gulf. As per Bloomberg report, “Saudi Arabia, Bahrain and Egypt cut diplomatic ties with Qatar, escalating a crisis that started over Qatar’s relationship with Iran and its support of the Muslim Brotherhood.”