U.S. employment data slows, boosting Asian markets

Weak U.S. employment data has reduced expectations for interest rate hikes by the Federal Reserve, leading to gains across Asian stock markets. The U.S. Bureau of Labor Statistics reported that nonfarm payrolls increased by only 29,000 in September, significantly lower than the 84,000 analysts had projected. Additionally, the unemployment rate rose slightly to 4.2%.

This cooling labor market, combined with falling oil prices and a slowdown in the core Personal Consumption Expenditures (PCE) price index, has shifted market sentiment. According to the CME Group FedWatch tool, the probability of a rate hike this month has dropped sharply from over 65% to just above 20%.

In response to these developments, Asian markets saw significant upward movement. The Nikkei 225 in Japan rose by 2.4%, and the Taiwan Weighted Index climbed 2.55%. Other markets, including Hong Kong and Sydney, also closed higher, while markets in Shanghai and Seoul were closed for holidays.