Asian Shares Rise On Fed Rate Cut Optimism

(RTTNews) - Asian stocks advanced on Monday as weak U.S. jobs data spurred expectations of Federal Reserve rate cuts, with some analysts anticipating a significant 50 basis point interest rate cut at the U.S. central bank's September 17 meeting.

Chinese stocks rebounded after posting their biggest weekly fall in five months last week. The benchmark Shanghai Composite index edged up by 0.38 percent to 3,826.84, led by gains in the consumer staple sector.

Hong Kong's Hang Seng index climbed 0.85 percent to 25,633.91 despite Chinese export and import growth in August missing forecasts.

Customs data showed that outbound shipments from China rose 4.4 percent year-on-year in August, marking the slowest growth in six months. Imports grew 1.3 percent following 4.1 percent growth a month earlier.

Japanese markets led regional gains while the yen fell sharply due to political uncertainty after Prime Minister Shigeru Ishiba stepped down Sunday under mounting pressure from the LDP following a significant defeat in the upper house elections.

The Nikkei average jumped 1.45 percent to 43,643.81 on growing hopes for economic measures that may be implemented under the next administration.

Investors also cheered data that showed Japan's economy expanded much faster than initially estimated in the second quarter, driven by upward revisions in private consumption and inventories. The broader Topix index settled 1.06 percent higher at 3,138.20.

Seoul markets ended higher as construction stocks like GS Engineering & Construction and Daewoo Engineering & Construction rallied on efforts by the government to address the housing crunch.

The Kospi average rose 0.45 percent to 3,219.59, with the upside capped by concerns over U.S. investments after a sweeping U.S. immigration raid at a Hyundai Motor Co.-LG Energy Solution Ltd. battery venture in Georgia.

Australian markets ended slightly lower, with banks and energy stocks taking a hit. The benchmark S&P/ASX 200 dropped 0.24 percent to 8,849.60 while the broader All Ordinaries index closed 0.15 percent lower at 9,126.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.44 percent at 13,281.14, extending gains for a third consecutive session.

The dollar weakened while gold hovered near record levels above $3,600 per ounce in Asian trade after dismal U.S. labor data sealed the case for rate cuts this month.

Oil prices rose over 1 percent, helped by the prospect of more sanctions on Russian crude.

U.S. stocks reached new intraday high before reversing course to end lower on Friday as weak jobs data sparked economic worries but raised hopes for imminent rate cuts.

Treasury yields sank as data showed the U.S. economy added just 22,000 jobs in August, far short of expectations for 75,000 and down from an upwardly revised 79,000 jobs in July.

The jobless rate rose to 4.3 percent from 4.2 percent while June revisions showed a negative print, marking the first labor market shrinkage since 2020.

The Dow shed half a percent, the S&P 500 slid 0.3 percent and the tech-heavy Nasdaq Composite finished marginally lower.