Asian Stocks Surge as Weak US Jobs Data Triggers Rate Hike Odds Reversal

Asian stocks rallied on Monday as the Nikkei and Kospi led the charge higher following weak US jobs data.

The figures showed that US employers unexpectedly cut jobs in July, with hiring numbers for the previous two months also revised downward.

This led to increased bets that the Federal Reserve would hold off on raising interest rates, with swaps data showing the odds of a September hike falling to 43%, from 64% the previous week.

The US dollar slid to a two-month low in response, which could give Asian currencies room to strengthen.