In Asian Equity Markets indices were mixed on Monday despite the strong showing on Wall Street as investors digested last week’s trade talks and U.S. jobs numbers. In Japan, the benchmark Nikkei 225 came under pressure, with the index slipping 0.45 percent. The Topix traded lower by 0.32 percent as gains in the mining and oil sub-indexes were offset by losses in the financial and technology sectors. On the mainland, the Shanghai composite edged up by 0.32 percent and the smaller Shenzhen composite eased 0.63 percent. Australia’s S&P/ASX 200 tacked on 0.48 percent amid broad-based gains, with energy and materials names climbing. The heavily weighted financials sector was up 0.29 percent.
In Currency Markets the US dollar stayed near its 2018 peak early on Monday after U.S. jobs and wages data did little to water down perceptions of strength in the U.S. economy, though renewed concerns about trade frictions could cloud its outlook. The dollar index stood at 92.609, near Friday’s high of 92.908, which was its firmest level since late December. The dollar gained broadly, maintaining its strength after Friday’s mixed U.S. data. Elsewhere, the British pound traded at $1.3538, near its four-month low of $1.3487 touched on Tuesday. The dollar stood little changed at 109.10 yen, off its three-month high of 110.05 yen.
In Commodities Markets U.S. oil prices rose above $70 a barrel on Monday for the first time since November 2014, as a deepening economic crisis in Venezuela threatened the country’s already tumbling oil supplies. The concerns added to worries over a looming decision on whether the United States will walk away from a deal with Iran and instead re-imposes sanctions on Tehran, keeping international oil markets on edge. U.S. West Texas Intermediate (WTI) crude futures rose 0.7 percent to trade at $70.18 per barrel, up 46 cents from their last settlement. Brent crude oil futures were at $75.22 per barrel, up 35 cents, or 0.5 percent from their last close.
In US Equity Markets Apple and other technology stocks led a rally on Wall Street on Friday after weaker-than-expected U.S. wage growth data eased concerns about faster interest-rate hikes. Shares of Apple Inc jumped to a record high of $184.00 during the session after Warren Buffett’s Berkshire Hathaway Inc disclosed that it had raised its stake in the iPhone maker. The S&P 500 technology sector was up 1.9 percent, the biggest gainer on the index. The S&P 500 gained 1.38 percent, to 2,665.89 and the Nasdaq Composite added 1.77 percent, to 7,213.36. Shares of CBS Corp rose 7.6 percent after the media company topped revenue and profit estimates for the first quarter.
In Bond Markets India’s 10-year benchmark bond rallied early on Monday taking comfort from the central bank’s unexpected announcement last week about purchase of sovereign bonds via open market operation. The 10-year benchmark bond yield opened at 7.60 percent, sharply lower from its Friday close of 7.73 percent. U.S. Treasury yields were little changed on Friday. Yields on U.S. benchmark 10-year Treasury notes and 30-year yields earlier slid to two-week lows after the jobs data, while those on two-year notes fell to a one-week trough. Those gains subsequently reversed, except for 30-year bond yields, which were down on the day, but came off a two-week low.