Weaker US Jobs Report Sends Stocks Soaring and Dollar Plummeting

Global stocks saw their strongest weekly gain since May after the weaker-than-expected US jobs report eased fears of an imminent Federal Reserve rate hike. The Nasdaq rose 0.7% in early trading, while the dollar fell, giving the Japanese yen a reprieve. The yen strengthened to 157.20 per dollar after earlier nearing 159, a level widely seen as a potential trigger for policy intervention.

The US payroll report showed employment fell by 23,000 jobs, confounding expectations in a Reuters poll for an increase of 80,000. This gave the Fed more room to keep rates unchanged next month while assessing upcoming economic indicators, including next week's US inflation report.

Lindsay Rosner, head of multi-sector fixed-income investing at Goldman Sachs Asset Management in New York, noted that 'History doesn't repeat, but sometimes it rhymes.' The jobs data followed a similar pattern to previous years, with July employment falling by 23,000 jobs. This development helped support the view that rates would be held steady in September.