Weaker US jobs data support risk appetite
Friday's weaker-than-expected US labour market report was well received by equity investors, as it reduced the likelihood of another Federal Reserve rate hike.
The resulting gains on Wall Street provided a positive lead for Asian markets, with most major indices starting the week in positive territory. The renewed modest rise in oil prices was largely offset by the improved interest-rate outlook.
Asian markets rise despite weaker Japanese data
Technology stocks were once again in focus across Japan, South Korea and China.
In Japan, however, the latest trade data disappointed, with the trade balance coming in significantly weaker than expected. The current account balance also fell short of market forecasts.
Middle East negotiations remain fragile
Negotiations between the United States and Iran briefly raised hopes over the weekend that a breakthrough could finally bring the conflict closer to a resolution.
However, Iran subsequently withdrew its approval of a potential agreement to reopen the Strait of Hormuz. Major sticking points and conflicting demands therefore remain unresolved.
While investors are still trying to look beyond the geopolitical uncertainty, upcoming inflation data could provide an uncomfortable reminder of the economic consequences of persistently elevated energy prices.
