By Chris Becker
The risk tone for the next month was set high and positive on Friday night as the latest US jobs report – the non-farm payrolls or NFP – beat expectations and previous prints were revised higher. This was offset by a disappotining manufacturing PMI print but nonetheless, US Treasury yields jumped alongside stocks with Wall Street closing nearly 1% higher across the board to new record highs. Currency and other undollars reacted in kind, with gold and oil leaping higher while the Aussie rebounded alongside. This should make a very positive open here to start the week in Asia this morning.
Looking at the action on Asian markets on Friday, where the Shanghai Composite found some ground finally, closing almost 1% higher to 2958 points after a volatile week while the Hang Seng Index closed 0.7% higher at 27100 points making for a solid breakout above the weekly downtrend line. Futures are indicating a followthrough today, so watch the previous high reached in September at ca. 27400 to be breached:
