Japanese stocks rose for a second day following news that PM Suga would resign.
(Jiji Press/AFP via Getty Images)
Global stocks climbed higher on Monday as markets in the U.S. were closed in observance of the Labor Day holiday.
In Asia, Tokyo’s Nikkei 225 surged 1.83% while the Hong Kong Hang Seng Index lifted 1.01%. The Shanghai Composite increased 1.12%.
In Europe, London’s FTSE 100 was 0.5% higher as the pan-European Stoxx 600 ticked up 0.6%. Both Paris’ CAC 40 and the DAX in Frankfurt moved 0.6% into the green.
U.S. futures, which continue trading even while markets are closed, were higher. Futures for the Dow Jones Industrial Average pointed up around 75 points, with S&P 500 and Nasdaq futures similarly upbeat.
Overseas markets climbed Monday following Friday’s key U.S. jobs report, which fell short of expectations.
Investors are paying especially close attention to jobs data, as the U.S. Federal Reserve has indicated that it will keenly watch employment while it mulls slowing, or tapering, its pandemic-era measures to add liquidity to markets.
Also read: A Weak Jobs Report Puts Fed in a Bind as It Stares at Stagflation
Plus: Anatomy of a Miss: The August Jobs Report
“Friday’s U.S. employment data substantially lowered the risks of a Fed taper this year, which is playing out well in Asian equity markets this morning,” said Jeffrey Halley, an analyst at broker OANDA. Analyst Russ Mould of broker AJ Bell noted that the buoyancy in European stocks was also linked to the data from the end of last week.
Japanese stocks outperformed, continuing the march higher after surging more than 2% on Friday, following the news that prime minister Yoshihide Suga would resign.
“His departure also opens up the prospect that a new leader will embark on a new stimulus program, with one of the main challengers and front runner Fumio Kishida pledging a new program of measures worth trillions of yen,” said Michael Hewson, an analyst at broker CMC Markets.
In Germany, investors welcomed data showing that manufacturing orders rose in July to the highest levels since records began in 1991—up 24.4% year-over-year on an adjusted basis.
Crude prices fell, with international benchmark Brent crude down more than 3% since Friday to just above $72-a-barrel, after Saudi Arabia cut crude prices to Asian customers by more than expected.
Headline economic data in the week ahead includes U.S. job openings—JOLTS—for July on Wednesday, followed by the producer price index (PPI) on Friday. In Europe, the European Central Bank will release a monetary policy decision on Thursday.
