Asian shares rise as US jobs report eases growth anxiety
The Fed’s dovish turn startlingly strong nonfarm payrolls data soothed some of the market’s worst fears about the global outlook
Sydney — Asian shares sped ahead on Monday as a dovish turn by the Federal Reserve and startlingly strong US jobs data soothed some of the market’s worst fears about the global outlook. Chinese stocks firmed after the country’s central bank announced an easing in policy on Friday, with 100 basis points of cuts to bank reserve requirements freeing up around $116bn for new lending. “This year we might reasonably expect to see as many as four 100 basis point [reserve requirement ratio] cuts and, in the absence of capital outflow pressures on the currency, quite possibly cuts to the benchmark one-year lending rate as well,” said National Australia Bank head of forex strategy Ray Attrill. Chinese officials also meet their US counterparts for trade negotiations starting later Monday, the first face-to-face talks of the year. US President Donald Trump said on Sunday that the talks were going very well and that weakness in the Chinese economy gave Beijing a reason to work toward a deal. Sha...
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