Global stocks rallied and Treasury yields dropped on Tuesday, after fresh US data showed the number of new job openings was lower than analysts expected, easing the pressure on the Federal Reserve to further raise interest rates.
The jobs report comes at a time of heightened anxiety surrounding US labour and inflation data, after the US central bank signalled that its future policy decisions would depend on the figures that come out this month. The dollar, which tends to fall when investors anticipate lower interest rates, lost 0.3 per cent against a basket of six peer currencies.
The closely watched US non-farm payrolls report, due on Friday, has been one of the key metrics feeding into the Fed’s policy decisions as its historic monetary tightening cycle approaches its end. Hong Kong’s Hang Seng index advanced 2 per cent and the CSI 300 climbed 1 per cent on Tuesday. China’s benchmark index had risen 1.2 per cent a day earlier, after much larger early gains melted away.
Separately, the China Securities Regulatory Commission, a stock market regulator, promised to slow the pace of initial public offerings as new listings tend to depress valuations and lower liquidity in broader markets.