Non-Farm Payrolls revealed weaker numbers than expected last Friday, employment increasing by 150,000 as opposed to the expected 180,000 jobs. Unemployment changed little at 3.9%. The implications are that the US economy is perhaps finally slowing down enough to justify decreasing interest rates. That’s certainly how the Dollar index took it, falling a full percentage point to close a hair’s breath above 105 on Friday.
The weakness in the Dollar was enough to allow USDJPY to close back below 150 Yen. On the other side of the equation, Bank of Japan Governor Kazuo Ueda spoke early Monday morning in Nagoya, telling the world to expect no reduction in monetary easing just yet. The central bank’s target of 2% inflation continues to elude them, and with it any incentive to tighten the money supply.
Stock indices continued their recent uptrends late last week. Green across the board in Asia as the Nikkei 225 gained over a percent on Friday, the Hang Seng closing 2.52% higher and stocks throughout Asia-Pacific outperforming. Many indices off to a flying start on Monday morning too, Korea’s KOSPI in particular opening the session on strong footing.
Remains to be seen if the momentum carries over into Europe later in the day. Stocks in the US reacted positively to the NFP data, the Nasdaq Composite leading the way gaining 1.38% on Friday, S&P 500 climbing 0.94% and the DOW up 0.66%. No immediate drivers in the markets for now but the December FOMC decision lurks ominously in the background.
