Asian Shares Rise On Easing Fed Rate Hike Bets

(RTTNews) - Asian stocks rose broadly on Monday after U.S. employers unexpectedly cut jobs in July and hiring figures for the prior two months were also revised downward, helping ease the risk of an immediate U.S. interest-rate hike.

Regional gains, however, remained limited after Tehran warned that it will not reopen the Strait of Hormuz unless the United States meets a series of conditions, denting hopes for a return to stability in global energy markets.

The U.S. dollar edged up from a two-month low in Asian trade ahead of key U.S. inflation readings due later in the week.

Brent crude futures were little changed near $84 a barrel after rising more than 5 percent over the previous three sessions.

Gold extended gains to trade at $4,353 an ounce after surging over 7 percent to reach its highest level in seven weeks on Friday.

China's Shanghai Composite index rose 0.67 percent to 3,966.59 as signs of persistent deflationary pressures in the world's second-largest economy fueled speculation that Beijing could roll out more stimulus to prop up domestic demand. Hong Kong's Hang Seng index surged 1.05 percent to 25,937.49.

According to official data released on Sunday, China's consumer price index rose 0.5 percent year-on-year in July, below forecasts for 0.8 percent growth following June's 1 percent gain. Producer price growth slowed to 3.5 percent from 4.1 percent in the previous month.

Japanese markets rose sharply while the yen steadied after the "Summary of Opinions" from the Bank of Japan's July monetary policy meeting revealed a divided board regarding the pace of future interest rate hikes.

The Nikkei average jumped 2.08 percent to 66,970.22, reaching its highest level in nearly four weeks. The broader Topix index gained 0.63 percent to close at 4,100.61. Seoul stocks rose notably to snap a two-day losing streak on fading Fed rate hike bets. The Kospi index surged 0.65 percent to 6,299.66.

Among the prominent gainers, LG Energy Solution climbed 2.1 percent and Hyundai Motor rallied 3.2 percent.

Australian markets ended lower, with banks falling sharply ahead of the Reserve Bank of Australia's policy decision, due on Tuesday.

The benchmark S&P/ASX 200 dropped 0.33 percent to 9,232.60 while the broader All Ordinaries index settled 0.22 percent lower at 9,424.10.

Westpac Banking Corp shares slumped 5.9 percent after the lender reported a sharp drop in mortgage applications following changes to tax laws and warned that housing credit growth could halve next year.

Peers ANZ, Commonwealth Bank and NAB all fell around 2 percent while mining giants BHP and Rio Tinto both rose around 1 percent. Treasury Wine Estates soared 4.2 percent after announcing it would overhaul its U.S. business.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended up 0.46 percent at 13,888.24, snapping a two-session losing streak.

U.S. stocks advanced on Friday and Treasury yields fell as sluggish jobs data helped reduce the chances of a Federal Reserve rate hike next month.

Data showed non-farm payroll employment fell by 23,000 jobs in July after an increase of downwardly revised 20,000 jobs in June. Economists had expected an increase of 88,000 jobs.

The jobless rate edged down to 4.1 percent while the labor-force participation rate fell to its lowest level in more than five years.

The S&P 500 gained 0.6 percent to reach a new record closing high, while the Dow rose 0.3 percent and the tech-heavy Nasdaq Composite surged 1.3 percent.