Gold prices climbed higher and Asian stock markets bounced back following weaker-than-expected US jobs data and a decline in oil prices. These developments lowered market expectations for additional Federal Reserve interest rate hikes, according to FX Street (ING).
FX Street reported that the softer US jobs figures reduced fears of further Fed tightening, while lower Treasury yields and a weaker US Dollar enhanced the attractiveness of non-yielding assets like gold. Meanwhile, Asian equities rallied, with South Korea's KOSPI index surging nearly 6% on Friday amid easing geopolitical tensions and a reassessment of hawkish Fed bets.
For Japanese investors, these shifts highlight the ongoing sensitivity of local markets to US economic data and Fed policy outlooks, underscoring the importance of monitoring global macroeconomic trends in portfolio management.