After the report, the probability of a 50-basis point November Fed rate cut fell to 0%. However, expectations of a 25-basis point Fed rate cut and signs of a resilient US economy boosted demand for riskier assets. Friday’s US equity market gains set the tone for the Monday Asian session.

Expert Views on the US Labor Market

Shane Oliver, Head of Investment Strategy and Chief Economist at AMP, commented on the US Jobs Report, stating,

“Strong Sep US jobs with payrolls +254k, prior mths +72k, unemp fell to 4.1% & av hrly earnings +0.4%m/+4%y (from +3.9%y). Leading jobs indicators still point to a softer labour mkt ahead, but the resilience so far leaves the Fed on track for -0.25% in Nov.”

Middle East Tensions Add to Market Uncertainty

Concerns about a possible escalation of the Middle East conflict remain a headwind for riskier assets. An increasing threat of a wider regional conflict could trigger a flight to safety, impacting demand for equities. WTI oil prices could reflect investor sentiment toward the Middle East conflict. Another surge in crude oil prices could pressure Asian stocks.

On Monday, WTI crude was down 0.27% to $74.18 after last week’s 9% surge.

Hang Seng Index Advances on the Final Day of the National Holiday