Asian Equities Boosted by Strong U.S. Job Data

© Reuters. Asian equities continued to trade well in green in afternoon trade on Monday – Asian equities continued to trade well in green in afternoon trade on Monday. The strong job data from the U.S. last Friday supported the Asian stock markets from Tokyo to China and Seoul.

The U.S. reported an increase in nonfarm payroll employment of 223,000 in May, while average hourly earnings also rose 0.3% compared to May last year. The unemployment rate fell from 3.9% to 3.8%. The strong data pointed to confidence in the U.S. economy.

Supported by the rosy jobs data and the likelihood of another interest rate increase by the U.S. Federal Reserve, the U.S. dollar remained rather firm against the Japanese yen at 0.06% higher. A weaker yen is often cited as tailwind for Japanese stocks, especially for the exporters.

225 added 1.36% by 12:38AM ET (03:38 GMT). Automakers such as Toyota Motor Corp (T:7203) gained 3.79%, Honda Motor Co (T:7267) added 2.14% and Nissan Motor Co (T:7201) traded 1.61% higher.

Meanwhile, the trade talks between the U.S. and China over the weekend ended without any deal announcement. On Sunday, China said “if the U.S. introduces trade sanctions including raising tariffs, all the economic and trade achievements negotiated by the two parties will be void.”

But the looming trade war between the U.S. and China had little impact on the stock markets in Greater China, given the upbeat U.S. May jobs data and the potential rate hike by the Fed later this month boosted market sentiment.

The and Shenzhen Component traded 0.22% and 0.25% higher.

Hong Kong’s also rose 1.28%, with automobile company Geely Automobile Holdings Ltd outperforming other peers to surge 4.95%.

Meanwhile, South Korea’s advanced 0.25%, and Australia’s ASX also added 0.48% in afternoon trade.

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