The Nikkei 225 index rose by approximately 2.5% on Monday following reports of weak U.S. employment data. This shift in economic indicators reduced market expectations for a Federal Reserve interest rate hike in October to below 25%. Meanwhile, the 10-year Treasury yield remains elevated near 5.25%, reflecting levels close to a two-decade high.
Data from September showed net hiring of 29 000, significantly lower than the 133 000 recorded in August. Wage growth also decelerated, contributing to the market sentiment. In the U.S., the Nasdaq composite increased by 1.2%, while the S&P 500 rose by 0.7%. The Nasdaq 100 achieved a record close on Friday, though its futures later declined by 0.1% during Asian trading sessions.
In the technology sector, Tokyo Electron saw a 5.2% increase, and SoftBank Group shares rose by 3.1%. Taiwan Semiconductor Manufacturing Co. gained approximately 3% amid reports of potential collaboration with Elon Musk’s Texas-based chip venture. Musk confirmed that discussions are taking place, although no formal agreement has been officially announced at this time.
Market volatility persists due to concerns over long-term yields and corporate borrowing, which analysts link to increased funding for AI projects. Brent crude oil prices hovered near $101 per barrel after reaching a peak of $103. Despite the recent stock rally, analysts warn that geopolitical tensions and bond market pressures continue to pose risks to sustained growth.
