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Updated on August 1, 2021 3:34 PM

Asian stocks extend global rally following US jobs report.

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TOKYO – Most Asian stocks rose on Monday, extending the rally that took global stocks to an all-time high after a US employment report indicated that the economic recovery remained intact but not yet justified. an immediate withdrawal of the stimulus from the Federal Reserve.

Japanese markets, however, bucked the trend, with the Nikkei falling 0.5% following a spike in COVID-19 infections in Tokyo, just weeks before the city will host the Games. Olympics

MSCI’s broader Asia-Pacific equity index outside of Japan rose 0.3%, led by a 1% gain in Taiwan. Chinese blue chips added 0.1%.

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Trading is anticipated to be tighter than usual with US markets closed over the extended weekend of July 4, meaning that “some of those bullish moves could be capped and price action could be choppy.” according to Kyle Rodda, market analyst at IG in Melbourne. .

“But given Friday’s non-farm payroll numbers, things are still very, very optimistic, and I think they will start to see that materialize again as the week progresses,” Rodda said.

“Conditions are right for stocks to keep rising around the world.”

The MSCI All Country World Index closed at a record 724.66 last week and was up 0.1% on Monday.

S&P 500 futures were heading down 0.1% to open Tuesday, after the index closed 0.8% higher to a record 4,352.34 on Friday. The Dow Jones Industrial Average rose 0.4% and the Nasdaq Composite added 0.8% to hit a record high.

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US nonfarm payrolls increased by 850,000 jobs last month, more than expected. But the unemployment rate unexpectedly rose to 5.9% from 5.8%, while closely watched average hourly earnings, an indicator of wage inflation, rose 0.3% last month, below of the consensus forecast of a 0.4% increase.

“The Goldilocks print suggests there is no need to accelerate the reduction schedule or implicit rate hike profile,” National Australia Bank analyst Tapas Strickland wrote in a note to the client.

“Overall, the payroll level is still 6.8 million below February 2020 pre-pandemic levels and is still below the level of substantial progress that the Fed needs. As such, there is nothing in this report on the for the Fed to get aggressive. “

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Eyes will be focused on the minutes of last month’s Federal Open Markets Committee meeting, when lawmakers surprised markets by signaling two rate hikes by the end of 2023.

Comments from Fed officials since then have been more balanced, particularly from Chairman Jerome Powell, and investors will scrutinize Wednesday’s statement for more clues about the timing of the policy tightening.

US bond markets were closed for the holidays, after the benchmark yield on 10-year US Treasuries declined to 1.4306%.

The dollar was mostly flat on Monday after falling from a three-month high at the end of last week, pressured by weaker details in the US non-farm payroll report.

The dollar changed little at 111,055 yen and $ 1,18615 per euro.

Gold rose 0.1% to $ 1,789.46 an ounce.

Crude oil slipped as the OPEC + talks progressed. Saudi Arabia’s energy minister on Sunday rejected opposition from fellow Gulf producer the United Arab Emirates to a proposed OPEC + deal, calling for “compromise and rationality” to secure a deal when the group reconvenes. on Monday.

Brent crude fell 29 cents to $ 75.88 a barrel and US crude lost 24 cents to $ 74.92 a barrel.

(Edited by Sam Holmes)

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In-depth reports on the economics of innovation from The Logic, presented in association with the Financial Post.

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