Asian Markets Rally on Weak US Jobs Data

Asian stock markets surged on Thursday following a weaker-than-expected U.S. jobs report for September, which significantly lowered the chances of further Federal Reserve interest rate hikes. Japan's Nikkei Average led the rally with a 2.43% gain, reaching 69,967 in morning trading. Electronics and machinery sectors drove the advance, with Advantest rising 4% and Mitsubishi Heavy Industries up 2.5%.

Taiwan's Weighted Index also climbed 2.03% to 49,460, extending its record-high run after closing at 48,475.74 on October 2. Meanwhile, the Shanghai Composite Index edged up 0.3%, while Hong Kong's Hang Seng Index slipped 0.3%. The MSCI Asia-Pacific Index gained 0.4%.

The U.S. Department of Labor reported that nonfarm payrolls increased by just 29,000 in September, far below the market consensus of 84,000. August's figure was revised down from 162,000 to 133,000. The unemployment rate rose to 4.2%, and wage growth slowed. These figures suggest a cooling labor market, reducing the likelihood of a Fed rate hike in October to 22%, down from 64% a week ago.

Shane Oliver, chief economist at AMP, described the jobs report as 'neither too hot nor too cold,' suggesting the Fed won't rush to hike rates. However, the 10-year Treasury yield remained above 5%, its highest level since 2002. Guanyin Futures cautioned that seasonal factors may have influenced the weak payroll data, urging caution in interpreting the labor market's health.

Spot gold prices surged nearly $40, and the dollar index declined following the jobs report. Taiwan's stock index futures jumped 557 points in overnight trading, briefly surpassing 49,000.