Asia report: Stocks higher after US jobs data, but trading volumes thin

(Sharecast News) - Asian stocks mostly rose on Monday, with Japanese equities rallying strongly in particular after Friday's US jobs data, though trading volumes were low with markets in mainland China and South Korea closed.

Tokyo's Nikkei 225 jumped 2.4% on the day, but gains were more modest elsewhere: the Hang Seng in Hong Kong was up 0.3%, the Sensex in Mumbai rose 0.6%, Singapore's STI was up 0.5% while Sydney's S&P/ASX 200 edged 0.1% higher.

Markets in South Korea were closed on Monday for the National Foundation Day (Gaecheonjeol) holiday, while trading in mainland China won't resume until the Golden Week national holiday ends on Thursday.

Japanese stocks briefly hit a three-month high on the back of strong gains in the AI and chip sectors, with Advantest, Tokyo Electron and tech investment giant SoftBank performing well.

Hong Kong-listed tech stocks were also in demand, including Lenovo, Hua Hong Semiconductor and Kingboard Laminates.

The rally followed data showing a sharp slowdown in the US labour market in September, which eased concerns about a near-term interest rate hike by the Federal Reserve. The US economy added just 29,000 jobs last month while the unemployment rate ticked higher and wage growth was subdued, raising hopes that the Fed will keep rates on hold this month.

"The non-farm payrolls number was a long way short of expectations, but in a looking-glass world where weak economic data could mean relief on the rate hike front this has been taken positively by investors. This logic was applied in Asia too, which saw widespread gains," said AJ Bell investment director Russ Mould.

Oil prices pulled back further as crude exports from the Middle East continued to recover and the G7 announced they would release fuel reserves, while the Trump administration called off a rumoured export ban on diesel. Brent crude was 0.9% lower at $101.32 a barrel.