Asian Markets Rise After US Jobs Data Pushes Stocks to Record Highs
Asian equity markets opened higher following US jobs data that drove American stocks to record highs, with gains seen across Australia, South Korea, and Hong Kong futures. The dollar weakened on Federal Reserve independence concerns after Chair Powell revealed criminal threats from the Justice Department. Oil held strong two-day gains amid Iran protests while safe-haven assets like gold and Swiss franc rose on geopolitical uncertainties.
*this image is generated using AI for illustrative purposes only.
Asian equity markets opened with gains following strong momentum from US employment data that drove American stocks to fresh record highs on Friday. The positive sentiment carried over despite growing geopolitical tensions and concerns about Federal Reserve independence that weighed on the US dollar.
Regional Market Performance
Asian markets took their cue from Friday's strong US performance, with the S&P 500 climbing 0.60% to close at an all-time high. Regional gains were broad-based across key markets:
| Market: | Performance |
|---|---|
| Australia: | Shares gained |
| South Korea: | Equities rose |
| Hong Kong: | Index futures advanced |
| Japan: | Markets closed for holiday |
The rally followed largely benign US employment data showing slightly fewer workers were added to the economy than economists forecast, while the unemployment rate edged down to 4.40%. Japanese financial markets remained closed Monday for a holiday, meaning no trading of cash US Treasuries occurred in Asia.
Currency and Safe-Haven Movements
The US dollar faced pressure after Federal Reserve Chair Jerome Powell revealed serious concerns about central bank independence. Bloomberg's gauge of the US currency dropped as much as 0.20% following Powell's statement about criminal threats from the Justice Department.
Powell disclosed that the Fed had been served grand jury subpoenas threatening criminal indictment over headquarters renovations. This unprecedented situation raised questions about the central bank's ability to set monetary policy independently.
Safe-haven assets responded strongly to the uncertainty:
| Asset: | Movement |
|---|---|
| Gold: | Gained up to 2.00% |
| Swiss Franc: | Rose up to 0.50% |
| US Equity Futures: | Declined |
Energy Markets and Geopolitical Tensions
Oil prices held their biggest two-day gain since October as escalating protests in Iran threatened supply from OPEC's fourth-biggest producer. The unrest raised possibilities of significant political change in the Islamic Republic, which would transform global geopolitics and energy markets.
Trump threatened repercussions if demonstrators were targeted, while Tehran warned the US and Israel against intervention. Market strategists noted the exceptional level of geopolitical uncertainty across multiple regions.
Technology Sector Developments
Asian technology shares received support from Taiwan Semiconductor Manufacturing Co.'s strong revenue results reported late last week. The company's revenue topped estimates, providing fresh momentum for the artificial intelligence trade in the region.
Market Outlook and Policy Developments
Despite recent gains, analysts highlighted the fragile nature of current market calm amid multiple uncertainties. Australian bonds rose with 10-year yields dropping two basis points, while the US 10-year yield ended Friday's session little changed.
The jobs data left expectations for additional Fed interest-rate cuts intact, though the pace of reductions remains uncertain. Major investment banks including Morgan Stanley, Barclays, and Citigroup pushed back their forecasts for Fed rate cuts later in 2026 following Friday's employment data.
Group-of-Seven finance ministers are scheduled to meet in Washington Monday to discuss rare earths, while New York Fed President John Williams and Atlanta Fed President Raphael Bostic are set to speak.
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