Vehicles are reflected in a window while electronic boards display stock information on the Australian Securities Exchange, operated by ASX.
Lisa Maree | Bloomberg | Getty images
SINGAPORE – Asia-Pacific markets were mixed on Monday as investors responded to last week’s US jobs report that exceeded expectations and fueled hopes for a faster economic recovery.
Australian stocks were in the green, but reiterated some of their previous gains. The benchmark ASX 200 climbed 1.06% as most sectors traded higher, with the heavily weighted financial sub-index up 1.05%. Major banking and mining stocks rose: Commonwealth Bank shares rose 1.46%, while Rio Tinto added 3.6%, Fortescue at 1.13% and BHP 2.63%.
In Japan, the Nikkei 225 rose 0.21% as bank stocks rose. Mitsubishi UFJ Financial Group shares gained 3.31%, Sumitomo Mitsui Financial Group rose 2.48% and Nomura shares rose 4.2%. Elsewhere, the Topix index added 0.46%.
Meanwhile, South Korean Kospi gave up earlier gains and fell 0.32%. In Hong Kong, the Hang Seng Index plunged 1.43%, while the Hang Seng Tech Index plunged 3.77%.
Mainland Chinese stocks also fell: Shanghai’s composite fell 0.2%, while Shenzhen’s component lost 1%.
Monday’s session in Asia-Pacific followed a wild day in US markets last Friday, where stocks bounced back from a sharp sell-off after stronger-than-expected nonfarm payroll reported improved optimism for a faster economic recovery.
Investors remain wary of the impact Biden’s massive fiscal experiment will have on longer-term interest rates, creating a fragile stock climate, ANZ Research analysts said in a morning note Monday. “That defensiveness could prevail in the mid-March meeting (Federal Open Market Committee).”
US Aid Package
The U.S. Senate over the weekend passed a $ 1.9 trillion coronavirus relief package that includes direct payments of up to $ 1,400 to most Americans. The bill is expected to pass in the Democratic House this week and be sent to President Joe Biden for signature before March 14 to revamp unemployment assistance programs.
Last month, Fed Chairman Jerome Powell told lawmakers that the US economy was a long way from its employment and inflation targets and that it will likely be some time before substantial further progress is made. He said inflation is still “soft” and that the Fed was determined to follow current policies, implying interest rates are likely to remain low for the time being.