(June 6 Bloomberg) Stocks in Asia excluding Japan rallied with oil and industrial metals after U.S. jobs data crushed speculation the Federal Reserve will raise interest rates by July. The pound slumped and U.K. equity index futures gained following polls that showed Britons favor exiting the European Union.
The MSCI Asia Pacific excluding Japan Index climbed to a one-month high. The Bloomberg Commodity Index advanced to levels last seen in October as crude traded near $49 a barrel and zinc rose for an eighth day. Malaysia's ringgit and Indonesia's rupiah were the best performers among 31 major currencies, after the Bloomberg Dollar Spot Index tumbled on Friday by the most since February, and the pound sank to a three-week low. Sovereign debt gained across most of Asia, extending a global rally that's driven yields to a record low.
The U.S. economy created the fewest jobs last month in almost six years, data showed Friday, and the odds of the Fed raising interest rates by July halved to 27 percent in the futures market. While reduced prospects of a rate hike are giving a lift to dollar-denominated commodities and assets in developing nations, gains are tentative ahead of the U.K. June 23 referendum on EU membership. Institutions including the International Monetary Fund have warned of dire fallout if Britain votes to exit.
Click on the link below to see the full story from Bloomberg: (by James Regan and Adam Haigh)