Monday 8th January 2024: Asian Markets Fluctuate Amid Hong Kong’s Decline, US Gains on Jobs Report – IC Markets

Global Markets:

  •  Asian Stock Markets : Nikkei up 0.27%, Shanghai Composite down 1.48%, Hang Seng down 1.81% ASX down 0.50%
  • Commodities : Gold at $2038.5 (-0.57%), Silver at $23.83 (-0.34%), Brent Oil at $77.42 (-1.13%), WTI Oil at $72.87 (-1.07%)
  • Rates : US 10-year yield at 4.048, UK 10-year yield at 3.775, Germany 10-year yield at 2.153

News & Data:

  • (USD) Average Hourly Earnings m/m 0.4% vs 0.3% expected
  • (USD) Non-Farm Employment Change 216K vs 168K expected
  • (USD) Unemployment Rate 3.7% vs 3.8% expected

Markets Update:

Asia-Pacific markets took a downturn on Monday, led by Hong Kong stocks which saw the Hang Seng index drop over 2%. This decline was fueled by healthcare stock losses. Additionally, China’s CSI 300 fell by 1.15% after a shadow banking conglomerate, Zhongzhi Enterprise Group, filed for bankruptcy liquidation late Friday. Meanwhile, Australia’s S&P/ASX 200 closed down by 0.50%, South Korea’s Kospi slipped by 0.32%, and the Kosdaq remained relatively stable.

Japan’s markets remained closed due to a public holiday and are scheduled to resume trading on Tuesday. In contrast, on Friday in the U.S., all three major indexes experienced gains following an impressive jobs report. The S&P 500 ended with a 0.18% rise, accompanied by a 0.09% increase in the Nasdaq Composite and a 0.07% uptick in the Dow Jones Industrial Average.

The U.S. economy displayed robust job growth in December, surpassing expectations with nonfarm payrolls expanding by 216,000, well above the anticipated 170,000 forecasted by economists. The unemployment rate held steady at 3.7%, indicating continued strength in the labor market. This positive report led to an increase in Treasury yields, with the benchmark 10-year rate reaching 4.103%.

Overall, Monday saw a reversal in Asia-Pacific markets, marked by declines in key indices. Conversely, the U.S. witnessed market gains fueled by a stronger-than-expected jobs report, showcasing a resilient labor market and prompting an uptick in Treasury yields.

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