Asian shares rise at open after US jobs surprise

Synopsis

Asian stocks experienced an initial surge following positive US labor market data, mitigating concerns about the impact of trade tensions. South Korean stocks notably led the gains after the election of a new president. Despite warnings from the OECD regarding the global economic downturn caused by trade policies, US markets demonstrated resilience, driven by encouraging economic indicators.

Asian stocks rose at the open after data showed the US labor market is holding up despite concerns about risks from President Donald Trump’s tariff war.

A regional gauge rose 0.3%, its first advance in four days. South Korean stocks led the moves with a 1.6% jump for the Kospi Index after the country elected a new president, capping six months of chaos. The dollar was steady in early Asian trading after gaining in the prior session. The S&P 500 rose 0.6% while the Nasdaq 100 advanced 0.8%.

Just days ahead of the US payrolls report, an unexpected increase in job openings buoyed sentiment during the US trading session. That helped offset earlier losses in stocks after the Paris-based OECD said Trump’s combative trade policies have tipped the world economy into a downturn, with the US among the hardest hit.

“Further signs of resilience in the US economic data are pushing the US stock market higher despite continued downside risks from US trade policy,” Kyle Rodda, a senior market analyst at Capital.com, wrote in a note Wednesday. “Wall Street defied recent tariff hikes and signs of reinflamed tensions between the US and China to rise once again.”

The rise in job openings reinforced the Federal Reserve’s assertion that the labor market is in a good place. While some economists fear a more notable weakening in coming months under the weight of tariffs, that hasn’t shown up in the data yet, supporting officials’ posture to keep rates steady.

The swaps market continues to price in two Federal Reserve rate reductions this year beginning in October. However, traders are ramping up bets that hedge against dramatic shifts in the path as questions on the economic impact of Trump’s administration evolving policies persist.

The higher-than-expected job openings number “is a good sign for the economy, as many were worried that the tariff uncertainty was weighing too heavily on businesses,” said Chris Zaccarelli at Northlight Asset Management.

On the trade front, the US reiterated that Trump and Chinese President Xi Jinping will talk “very soon.” The administration is actively monitoring China’s compliance with the Geneva trade agreement, White House Press Secretary Karoline Leavitt said.

The Office of the US Trade Representative has sent letters to trading partners to remind them of an upcoming deadline in negotiations, according to the White House. Commerce Secretary Howard Lutnick said he’s “very optimistic” about prospects for a deal between the US and India.

In Asian corporate news, Toyota Industries Corp. shares slumped 13% after a privatization deal.

Meanwhile, Trump signed a directive raising steel and aluminum tariffs to 50% from 25% starting Wednesday, following through on a pledge to boost import taxes to help domestic manufacturers. Prices for the metals in the US surged on Monday.

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