Asian Shares Rise as Soft Jobs Report Dents Rate Hike Fears

Asian share markets rose on Monday after a soft US jobs report reduced the likelihood of a near-term interest rate hike. The lack of progress in Gulf peace talks pushed oil prices up, with Brent crude adding 0.9% to $84.32 a barrel and US crude rising 0.7% to $78.74 a barrel.

The Strait of Hormuz shipping situation remains uncertain as Iran said that a deal with Oman defining new shipping lanes is in its final stages but will only be implemented once the US meets certain conditions. The revival in fuel costs increases the stakes for the upcoming July consumer price report, which could rekindle speculation about a Federal Reserve rate hike next month.

Michael Feroli, chief US economist at JPMorgan, noted that 'one thing we are watching for is any rebound in core goods prices after a two-month stretch in which they fell.'