Global Market Today: Asian stocks rise, Treasuries fall after strong US jobs data

Synopsis

Asian equities reached a record high, outperforming US markets due to attractive valuations and robust growth prospects. This surge occurred as Treasuries declined following stronger-than-expected US jobs data, tempering expectations for Federal Reserve interest rate cuts. The market now awaits US inflation figures for further direction.

Asian equities advanced for a fifth day, stretching their lead over US peers this year as relatively cheap valuations and firmer growth prospects lured buyers. Treasuries extended their losses after stronger US jobs data.

The MSCI Asia Pacific Index rose 0.4% to a record. The gauge is up around 13% so far this year, its best start to the year relative to the S&P 500 this century, as the region’s assets head for another strong year. Japanese shares advanced as markets returned after a holiday.

Treasuries dropped with the yield on the 10-year bond rising to 4.18% as traders pared bets on interest-rate cuts by the Federal Reserve this year following the jobs numbers. The latest data showed 130,000 roles added in January, twice the median forecast, as money markets priced in the Fed’s next cut in July, from June previously.

The moves signaled that for now, strength in the US economy counterbalances the desire for lower borrowing costs, supporting risk sentiment that has itself taken a battering over AI concerns in recent weeks. The next key hurdle for markets is Friday’s US inflation report, which could reinforce the case for keeping rates higher for longer if price pressures fail to ease.

“The report will ease concerns around the consumer,” wrote Krishna Guha at Evercore, referring to US jobs data. “It pours cold water on the idea the Fed could cut rates again before mid-year and will fuel internal debate as to how restrictive policy is and how much slack there is in the labor market.”

The S&P 500 ended Wednesday flat after a bumpy session with real estate services stocks getting hit, while the Nasdaq 100 rose 0.3%. In late hours, Cisco Systems Inc. gave a tepid margin forecast, overshadowing a generally positive outlook fueled by artificial-intelligence gains. McDonald’s Corp.’s US sales grew at the fastest pace in more than two years.

Elsewhere, gold and silver edged lower, while Bitcoin declined to trade around $67,000. The dollar held its losses, benefiting the yen, which touched a two-week high.

In commodities, oil rose as tensions in the Middle East outweighed concerns that there’s a supply glut growing. Nickel extended gains after Indonesia signaled a sharp cut to output this year, curbing supply from the world’s biggest mine.

Concerns about rising unemployment that led to three rate cuts late in 2025 — before a pause in January — were likely eased by Wednesday’s data. At last month’s policy meeting, Fed officials had already cited signs of stabilization as a reason to hold rates steady.

US payrolls rose in January by the most in more than a year and the unemployment rate unexpectedly fell, suggesting the labor market continued to stabilize.

Elsewhere, the Canadian dollar was little changed after the Republican-led US House passed legislation aimed at ending President Donald Trump’s tariffs on Canada.

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