Asian Stocks Track Wall Street Higher After US Job Losses Ease Rate Fears

Asian stock markets rose Monday following a stronger-than-expected US jobs report that eased fears of an interest rate hike by the Federal Reserve.

The US Bureau of Labor Statistics reported that 23,000 jobs were lost in July, with growth in May and June revised downward. This led to a decrease in the chances of a September rate hike to about 43 percent from 64 percent just a week ago, according to Bloomberg.

Tech firms, which benefit from lower interest rates, drove the gains in Asia. Japanese chipmakers Kioxia, Tokyo Electron, and Advantest led the charge, while SK hynix and Samsung in Korea also rallied.

However, National Australia Bank's Rodrigo Catril warned that the report does not provide a 'clean green light' for a dovish pivot by the Fed. He noted that inflation remains a pressing concern, and the next consumer price index releases will be key data points to watch before the September Federal Open Market Committee meeting.