Tokyo — Most Asian stocks gained on Monday, extending the rally that took global equities to a record high after a US jobs report signalled the economic recovery remained intact but did not yet warrant any immediate withdrawal of Federal Reserve stimulus.
Trading is set to be thinner than usual with US markets closed for the extended fourth of July weekend, meaning “some of those upside moves might be capped and price action might be choppy”, said Kyle Rodda, a market analyst at IG in Melbourne. “The goldilocks print suggests there is no need to accelerate the tapering timeline or the implied rate hike profile,” Tapas Strickland, an analyst at National Australia Bank, wrote in a client note.
Commentary by Fed officials since then has been more balanced, particularly from chair Jerome Powell, and investors will parse Wednesday’s release for further clues on the timing of policy tightening.