Strong jobs numbers pushed US 10-year Treasury yields higher, thus sending the greenback north across the board
Asian stocks were mostly higher on Monday, with thin trading conditions persisting as markets in Shanghai, Hong Kong, and Australia were closed for holidays. The Nikkei 225 in Tokyo rose 0.79% while the Kospi in Seoul gained 0.26%. However, the MSCI’s broadest index of Asia-Pacific shares outside Japan slipped slightly. In general, investors continue to cheer strong economic data out of the US. The U.S. labor department said on Friday that nonfarm payrolls surged by 916,000 jobs last month, the biggest gain since last August.
While North American markets will resume regular trading today following the Easter holiday weekend, European stocks will remain closed for the holiday on April 5. The Dow Jones Industrial Average gained 0.2% last week, the S&P 500 climbed 1.1%, and the Nasdaq added 2.6% last week.
Meanwhile, the dollar retains a slightly bullish bias on Monday ahead of fresh economic data due later today. Strong jobs numbers pushed US 10-year Treasury yields higher, thus sending the greenback north across the board. EURUSD has settled around 1.1750 in thin trading on Monday following failed attempts to challenge the 1.1800 figure last week. Failure to hold above this zone in the short term could send the pair back to the 1.1700 key support this week.
In other markets, Brent crude is back below the $64 figure at the start of the week despite Saudi Arabia raised prices for oil shipments to customers in its main market of Asia. The upside potential in the oil market remains limited at this stage, with the futures has been trading below the key 20-DMA since March 18. On the downside, a break below $63.50 would pave the way towards last week’s lows around $62.40.