SYDNEY- Asian share markets lagged a bounce in US and European futures on Monday, while bonds surrendered some of their recent gains and oil rallied as Saudi Arabia lifted its crude prices.
November’s mixed US jobs report did little to shake market expectations of a more aggressive tightening by the Federal Reserve, leaving a week to wait for a consumer price report that could make the case for an early tapering.
Omicron remained a concern as the variant spread to about one-third of US states, though there were reports from South Africa that cases there only had mild symptoms.
Early trade was cautious as MSCI’s broadest index of Asia-Pacific shares outside Japan inched down 0.4 percent.
Japan’s Nikkei eased 0.6 percent, even as the government considered raising its economic growth forecast to account for a record $490 billion stimulus package.
Chinese blue chips managed a 0.7 percent gain after state media quoted Premier Li Keqiang as saying Beijing will cut banks’ reserve requirement ratios (RRR) “in a timely way”.
Shares of embattled property developer China Evergrande Group slid 11 percent after saying there was no guarantee it would have enough funds to meet debt repayments.
Wall Street was looking to rally after Friday’s late slide, with S&P 500 futures adding 0.4 percent and Nasdaq futures 0.1 percent. EUROSTOXX 50 futures firmed 1.0 percent and FTSE futures 0.7 percent.
While headline US payrolls had underwhelmed in November, the survey of households was far stronger with a 1.1 million jump in jobs taking unemployment down to 4.2 percent.
“We think the Fed will view the economy as much closer to full employment than previously thought,” said Barclays economist Michael Gapen.
