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From Hideyki Sano
TOKYO (Reuters) – Global stock prices rose to a 1-month high on Monday after data showed a jump in US employment, while US bonds were under pressure due to concerns that the Federal Reserve may raise interest rates on earlier than he pointed out.
US futures traded 0.5% higher, keeping their gains during a closed session on Friday, although the heavy technology futures of the Nasdaq lagged and traded almost at a level.
In Asia, the growth was 0.8%, while the broadest Asia-Pacific stock index outside Japan was almost equal, with China closed on Tomb Cleanup Day and Australia on Monday.
The MSCI world index for all countries was almost equal, but remained close to its highest level since the end of February and within the record high set this month.
The US Department of Labor said on Friday that wages for non-agricultural enterprises increased by 91
This was well above the average forecast of economists of 647,000 and was closer to the whispered number of markets of one million. The data for February were also revised higher to show 468,000 jobs created instead of the previously reported 379,000.
“There will be further improvements in April as restaurants start to reopen. People expected economic normalization sooner or later, but the pace seems to be accelerating,” said Koichi Fujishiro, a senior economist at Dai-ichi Life Research.
With employment remaining at 8.4 million jobs below its peak in February 2020, the accelerating recovery has raised hopes that all jobs lost during the pandemic can be restored by the end of next year.
The prospect of a return to full employment, for its part, raises questions about whether the Fed can keep its promise to keep interest rates until 2023.
Markets have serious doubts, as the futures of Fed funds are fully valued with an increase in interest rates until the end of next year.
Many market players are also expecting the Fed to consider buying bonds this year, although Fed officials have said they have not yet discussed the issue.
“It will be impossible for the Fed to avoid discussing downsizing by the fall,” said Kozo Coide, chief economist at Asset Management One, noting that US President Joe Biden’s infrastructure spending plan is likely to be adopted by then.
The US Treasury’s two-year yield rose to 0.186%, close to its eight-month high of 0.194% in late February.
Longer-term bond yields also rose, with 10-year banknotes reaching 1.725% in Asia on Monday, extending growth that began Friday after the job report.
Data on strong jobs helped support the dollar.
The greenback traded at 110.57 yen, not far from a one-year high of 110.97 on Wednesday. The euro stood at $ 1.1767.
Gold slipped 0.4% to $ 1,724.70.
For crypto assets, ether slipped 1.7 percent to $ 2,040.21 from a record high of $ 2,144.99 on Friday. decreased 0.9% to $ 57,704.
Oil prices fell after OPEC + agreed last week to gradually ease some of its production cuts between May and July.
futures fell 0.6% to $ 61.09 a barrel.