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Nikkei rebounds on positive US jobs data

Positive jobs data from the US has helped push up the Japanese Nikkei 225 in Monday trading. 


Japan's Nikkei Stock Average 225 index witnessed a marked rally in trading on Monday (7 December 2015) following the release of positive jobs data in the US.

Serving to bolster confidence surrounding an impending increase in the US base rate of interest by the Federal Reserve (possibly coming as soon as this month), the Nikkei has reacted positively to the development given the increased confidence in the wider market that this news provides.

The Nikkei gained 0.99% in value during Monday's full trading session, boosted by the prospect of the global benefits of a strengthening US dollar. The market has therefore recovered almost half of the value it lost (2.2%) on Friday.

Elsewhere, markets across Asia generally responded in a positive fashion to the news of growing economic recovery in the US.

China's Shanghai Composite index was up by 0.34% on Monday, while Australia's ASX All Ordinaries Index rose by 0.09%. The Hong Kong Hang Seng Index was the only major Asian market to register a loss in its latest full trading session, with a minor downturn of 0.15%.

Asian markets are expected to improve in the wake of a strengthening US dollar, as while the cost of commodities may rise for some, the improved confidence of a lasting global recovery is expected to offset any negativity that this could engender.

Currently in the process of deliberating at its monthly rate-setting meeting, the US Federal Reserve is widely expected to be implementing a first rise in the US base rate of interest for almost a decade this month.



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