TOKYO (Reuters) – Global stock prices rose to a 1/2-month high on Monday, after data showed that US employment rose rapidly while US bonds came under pressure over concerns that the Federal Reserve could push up interest rates rather than what he indicated.
U.S. S & P500 futures traded 0.5% higher, retaining their gains achieved during a cut-off session on Friday, although the technically heavy Nasdaq futures were lagging behind and almost trading.
In Asia, the Nikkei rose 0.8% in Japan, while MSCI’s broadest index of Asia-Pacific stocks outside Japan was nearly equal, with China closing on Tomb Sweeping Day and Australia on Easter month.
MSCI’s world index for all countries was almost flat, but was at its highest level since the end of February and within a record high of the month.
The U.S. Department of Labor said Friday that non-farm payrolls rose 916,000 jobs last month, the largest gain since last August.
It was well above the average forecast of economists of 647,000 and was closer to the whisper number of one million. The data for February were also revised higher to indicate that 468 000 jobs were created instead of 379 000 previously reported.
‘There will be further improvements in April as restaurants reopen. “People expected economic normalization to happen sooner or later, but it seems to be accelerating,” said Koichi Fujishiro, senior economist at Dai-ichi Life Research.
While jobs will remain at a peak of 8.4 million jobs in February 2020, the accelerated recovery has raised hopes that all jobs lost during the pandemic could be restored by the end of next year.
The prospect of a return to full service once again raises the question of whether the Fed can keep its promise to keep interest rates until 2023.
Markets have high doubts, and the futures of Fed funds by the end of next year in one rate hike.
Many players in the market also expect the Fed to look at reducing its bond purchases this year, although Fed officials have said it has not yet discussed the issue.
“It will be impossible for the Fed to avoid talks by the fall,” said Kozo Koide, chief economist at Asset Management One. He noted that US President Joe Biden’s plan for spending on infrastructure is likely to be so far.
The two-year U.S. Treasury yield rose to 0.186%, close to its eight-month peak of 0.194% that hit the end of February.
Yields on longer-dated bonds also rose, with a 10-year high of 1.725% in Asia on Monday, extending the rise that began Friday after the job report.
The strong job data supported the dollar.
The greenback traded at 110.57 yen, not far from Wednesday’s one-year high of 110.97. The euro was $ 1.1767.
Gold slipped 0.4% to $ 1,724.70.
In cryptocurrencies, ether fell 1.7% to $ 2,040.21 from Friday’s record high of $ 2,144.99. Bitcoin dropped 0.9% to $ 57,704.
Oil prices fell after OPEC + agreed last week to gradually ease some of its production cuts between May and July.
U.S. crude futures fell 0.6 percent to $ 61.09 a barrel.
Reporting by Hideyuki Sano, Editing by Gerry Doyle