Investing.com - Asian Pacific shares started the week on a high note on Monday, following a rally in US stocks spurred by last week's encouraging labour market data.
By 10:20 am AEST (12:20 am GMT), the S&P/ASX 200, KOSPI 200, and Nikkei 225 added 0.2%, 0.3% and 1.2%, respectively.
After a strong monthly jobs report reinvigorated a stock market rally that had been losing momentum, major indexes saw significant gains, ending a week of market turbulence on a positive note. The S&P 500 rose by 1.1%, the NASDAQ Composite by 1.2%, and the Dow Jones Industrial Average increased by 307 points, or 0.8%. The upswing was widespread, with all 11 sectors of the S&P 500 closing the week higher.
Investors and market analysts have been closely scrutinizing economic data for indications that the jobs market is stronger than it appears. The latest monthly report indicated that job gains exceeded economists' expectations, the unemployment rate remained low, and average hourly earnings grew at the slowest pace since June 2021. This kept the hopes for a June interest rate cut alive.
The dream scenario of an economy that isn't overheating or underperforming remains intact, according to some investors. This optimism, coupled with bets that the U.S. economy will stave off a recession, has driven stock indexes to record highs this year.
However, the stock market rally had lost some of its momentum over the past week. Investors have been concerned about rising commodity prices, geopolitical tensions, and the Federal Reserve's plan to reduce interest rates. Despite Friday's gains, the S&P 500 recorded a loss of 1% for the week, its largest weekly decline since early January. The Dow Jones shed 2.3%, and the Nasdaq lost 0.8%.
In the commodities market, Brent crude oil was up 0.6% to US$91.17 a barrel, while gold was up 1.7% at US$2,329.75. Investors are closely monitoring the trajectory of oil prices, as rising prices at the pump could put pressure on U.S. consumers, who have so far continued to spend despite higher interest rates.
Meanwhile, China's markets were closed for the Ching Ming Festival public holiday, but Hong Kong shares ended the day flat, weighed down by interest-rate uncertainty in the U.S. and geopolitical tensions in the Middle East. Japanese stocks ended lower, dragged down by falls in brokerage and chip-related stocks.
European stocks fell after U.S. non-farm payrolls rose much more than expected in March, casting doubt on the prospect of near-term U.S. interest rate cuts. The Stoxx Europe 600 closed down 0.8% at 506.55, its lowest close in 2 weeks, even as U.S. stocks rose. Germany's DAX index fell 1.2%, France's CAC 40 lost 1.1%, while the U.K.'s FTSE 100 was down 0.8%.