Stock Rally Extends as Fed Bets Ease, Euro Drops - Asia Market Wrap

Global stocks extended gains into Asia while Treasuries rose after softer US jobs data reduced pressure on the Fed to keep raising rates. MSCI’s Asia-Pacific index gained around 1% following a tech-led rally on Wall Street, while Japan’s Nikkei 225 climbed about 2%. Oil prices slipped, with Brent falling around 0.5% to roughly $101.75 a barrel after Saudi Arabia cut prices for its benchmark crude to Asia as supply flows increased. Treasury yields eased modestly, with the US 10-year yield falling around 1 bp to 5.26%. The Euro weakened to its lowest level against the Dollar since May 2025 as political uncertainty in Spain added to concerns over Europe’s fiscal outlook. The currency fell as much as 0.8% to around $1.1161, while German bond futures rose and French debt underperformed. Friday’s weaker US jobs report continued to support bonds, with markets pricing less than a 20% chance of an October Fed hike. The move came after a prolonged selloff in government debt driven by inflation concerns, heavy public spending and rising corporate borrowing linked to AI investment. US stock futures gave back earlier gains, with S&P 500 futures slipping around 0.1% and Nasdaq 100 futures little