AFP, Hong Kong :
Asian markets rallied Monday after a blockbuster performance on Wall Street as US jobs data beat forecasts and the head of the Federal Reserve hinted at a slower pace of interest rate hikes.
China’s move to make it easier for banks to lend also provided support to equities, while investors keep an eye on Beijing as negotiators begin talks to end a trade war between the world’s top two economies.
Dealers started the week on the front foot following a surge on Wall Street Friday that came after figures showed more than 300,000 US jobs were created in December, tempering recent concerns about growth.
Later that day, Fed boss Jerome Powell said the bank had no “pre-set” plan for raising borrowing costs and was keeping a close watch on financial developments.
“We’re listening… sensitively to the message that markets are sending and we’ll be taking those downside risks into account as we make policy going forward,” he told a gathering of economists.
The news was music to the ears of traders, who have been fretting that the Fed would press on with its rate hike cycle, making it more expensive to borrow for investment.
The comments saw the Dow pile on more than three per cent while the Nasdaq was more than four per cent higher. They also overshadowed the budget gridlock on Capitol Hill that has shut down the US government, with Donald Trump warning it could go on for years if he is not given funding to build a wall on the Mexican border.
Asian markets rallied Monday after a blockbuster performance on Wall Street as US jobs data beat forecasts and the head of the Federal Reserve hinted at a slower pace of interest rate hikes.
China’s move to make it easier for banks to lend also provided support to equities, while investors keep an eye on Beijing as negotiators begin talks to end a trade war between the world’s top two economies.
Dealers started the week on the front foot following a surge on Wall Street Friday that came after figures showed more than 300,000 US jobs were created in December, tempering recent concerns about growth.
Later that day, Fed boss Jerome Powell said the bank had no “pre-set” plan for raising borrowing costs and was keeping a close watch on financial developments.
“We’re listening… sensitively to the message that markets are sending and we’ll be taking those downside risks into account as we make policy going forward,” he told a gathering of economists.
The news was music to the ears of traders, who have been fretting that the Fed would press on with its rate hike cycle, making it more expensive to borrow for investment.
The comments saw the Dow pile on more than three per cent while the Nasdaq was more than four per cent higher. They also overshadowed the budget gridlock on Capitol Hill that has shut down the US government, with Donald Trump warning it could go on for years if he is not given funding to build a wall on the Mexican border.
