Asian markets mixed after recent rally but outlook rosy

Asia markets mostly up on US jobs news but inflation fears linger

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Hong Kong: A shocking US employment report and Senate approval of Joe Biden’s massive stimulus plan pushed most Asian stock markets higher on Monday, while Brent crude oil nearly two years after the attack on Saudi energy facilities For the first time in this year, it broke through the $70 weekend in Arabia.

Wall Street provides excellent leaders for traders. After the news that the world’s largest economy created 379,000 jobs in February, all three major indexes soared, reiterating that the country is expected to achieve a strong recovery with the introduction of vaccines and easing policies. locking.

The report came before the Senate passed Biden’s $1.9 trillion rescue plan, which will be signed by the president this weekend.

However, the news added to fears about soaring inflation that could force the Federal Reserve to wind back the ultra-loose monetary policies that have been a key driver of a year-long equity market rally.

“The US federal government and the Federal Reserve seemed to have learnt something from their attempts to reheat the economy after the great financial crisis,” said David Kelly, at JP Morgan Asset Management.

“The economy is already surprisingly warm and, with the help of very aggressive policy, is likely to heat up quickly from here. However, the critical question remains whether they have the skill and discipline to turn the policy temperature down to a simmer before inflation, and not just the economy, comes to a boil.”

Tokyo, Seoul and Jakarta all rose while Sydney, Singapore and Taipei put on more than one percent each. Shanghai was also well up after figures at the weekend showed Chinese exports soared more than expected in January and February.

However, Hong Kong, Wellington and Manila are at a loss.

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