Asian Stocks Decline Amid Strong US Jobs Data and Fed Rate Concerns

Asian stock markets saw early declines on Monday as robust US jobs data prompted traders to reassess the Federal Reserve interest rate cuts timeline. Higher crude oil prices and renewed strength in the US dollar added to market pressures.

Indian Equity Markets Open Lower

Indian benchmark indices began the week on a weaker note:

• NSE Nifty 50: Opened 221.20 points or 0.94% lower at 23,210.30.
• BSE Sensex: Fell 712.94 points or 0.92% to 76,665.97.

The declines are attributed to the US jobs data, which dampened hopes for early Fed rate cuts, and surging crude oil prices, which hit a three-month high due to US sanctions on Russia.

Sectoral and Stock Performance

Among the Nifty 50 stocks:

• Major Losers: BPCL, Power Grid Corp, Trent, Adani Ports, and Adani Enterprises.
• Only Gainer: IndusInd Bank.

Other indices also faced downward pressure:

• Bank Nifty: Dropped 457.40 points or 0.94% to 48,276.75.
• Nifty Midcap 100: Declined 780.50 points or 1.43% to 53,805.25.

Global Market Trends

Shares in Australia slid over 1%, while equity futures for Hong Kong pointed to further declines. Japan’s markets were closed for a public holiday.

US stock futures continued to edge lower after a tough session on Friday:

• The S&P 500 fell 1.5%.
• The Nasdaq 100 dropped 1.6%.

Treasuries also struggled, with the 10-year yield climbing seven basis points to 4.76%, its highest level since 2023.

Currency and Bond Markets

The US dollar traded within tight ranges, strengthening against most major currencies on Friday and pushing an index of greenback strength to a two-year high. The Japanese yen bucked the trend, recovering against the dollar amid speculation that the Bank of Japan may raise its inflation outlook during a policy meeting later this month.

Bond yields in Australia and New Zealand also rose early Monday, reflecting global caution.

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