The vehicles are reflected in a window while electronic signs display stock information on the Australian Securities Exchange, operated by ASX.
Lisa Maree | Bloomberg | Getty Images
SINGAPORE – Asia-Pacific markets traded mixed on Monday, with investors reacting to last week’s US jobs report, which shattered expectations and fueled hopes for a faster economic recovery.
Australian stocks were in the green, but redid some of their previous earnings. The ASX 200 benchmark rose 1.06%, as most sectors traded higher, with the heavy finance sub-index adding 1.05%. The main shares of the banking and mining sector rose: Commonwealth Bank shares rose 1.46%, while Rio Tinto rose 3.6%, Fortescue rose 1.13% and BHP rose 2.63%.
In Japan, the Nikkei 225 rose 0.21% with the appreciation of bank shares. Mitsubishi UFJ Financial Group shares rose 3.31%, Sumitomo Mitsui Financial Group shares rose 2.48% and Nomura shares rose 4.2%. Elsewhere, the Topix index added 0.46%.
Meanwhile, South Korea’s Kospi gave up previous gains to trade down 0.32%. In Hong Kong, the Hang Seng index fell 1.43%, while the Hang Seng Tech index fell 3.77%.
Chinese mainland stocks also fell: the Shanghai compound fell 0.2%, while the Shenzhen component lost 1%.
Monday’s session in Asia-Pacific followed a busy day on US markets last Friday, where stocks returned from strong liquidation as non-farm payrolls stronger than the expected optimism for a faster economic recovery.
“Investors remain cautious about the impact that Biden’s huge fiscal experiment will have on long-term interest rates, creating a fragile stock environment,” analysts at ANZ Research said in a morning note on Monday. “This defensive attitude may prevail at the mid-March meeting (Federal Open Market Committee).”
US aid package
The US Senate approved a $ 1.9 trillion coronavirus relief package over the weekend, which includes direct payments of up to $ 1,400 for most Americans. The bill is expected to pass the House of Democrats this week and sent to President Joe Biden for his signature before the March 14 deadline to renew unemployment benefits.
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 is likely to take some time for substantial progress to be achieved. He said that inflation is still “low” and that the Fed is committed to current policy, which implies that interest rates should remain low for the time being.