Asian Markets Have Mixed Performance After US Labour Report

The US Bureau of Labour Statistics reported that 272,000 more US jobs were created in May 2024. Despite this, local unemployment went up from 3.9% in April 2024 to 4%. According to an Associated Press (AP) report, the Nikkei 225 index increased by 0.5% in response to records showing an economic downswing of 1.8% in Q1 2024, as opposed to the projected 2% contraction. The US dollar was stronger against the yen, rising from 156.83 JPY to 157.12 JPY.

Chinese and Hong Kong indexes were quiet because of the holidays. In South Korea, the KOSPI experienced a slight 0.7% dip.

The euro tripped after France dissolved its national assembly following a hitch in the parliamentary election on Sunday 9 June 2024. French President Emmanuel Macron called a sudden legislative election, causing the euro to drop to $1.0766 from $1.0778.

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Similarly, the Nasdaq, Dow Jones Industrial and S&P 500 slipped on Friday 7 June 2024, as the 10-year Treasury yield rose from 4.29% to 4.43%. Although the latest US labour report reflected rising unemployment for two months in a row, the overall job market seems to be strengthening.

Economists keep hoping for a US Federal Reserve interest rate cut. However, stronger economic performance and the resistant inflation rate are driving the maintenance of higher interest rates. Analysts believe that persistently ‘cooling’ economies could trigger a recession, which would negatively impact stock trading.