Asia-Pacific Markets Open Higher Amid U.S. Jobs Data Rally, Oil Prices Under Scrutiny

Asian equity indices are poised for gains at the open, driven by strong momentum from U.S. markets after the latest nonfarm payrolls report revealed job growth exceeding forecasts. The S&P 500 (SPX) surged 1.2% on Friday, fueled by signs of resilient labor demand and continued inflation moderation. This positive sentiment is expected to ripple through regional benchmarks, including Japan’s Nikkei 225 (NIKKEI), which is projected to open up 0.8%, reflecting renewed confidence among investors. The energy sector remains under pressure amid escalating unrest in Iran, where ongoing protests have disrupted oil infrastructure and raised fears of supply disruptions. Crude oil prices, tracked via USOIL, spiked 3.4% to $78.60 per barrel, reflecting heightened risk premiums. Market participants are closely monitoring developments, as any escalation involving U.S. military engagement could trigger further volatility in crude markets. Financial markets are also adjusting to shifting Fed policy expectations. With the U.S. unemployment rate holding steady at 3.9%, and average hourly earnings rising 0.4% month-over-month, speculation about a dovish pivot has intensified. The dollar index (DXY) weakened slightly to 104.3, indicating waning demand for the greenback as global risk appetite improves. Investors in technology and financial sectors across Australia, South Korea, and Singapore are benefiting from the favorable macro backdrop. Stronger-than-expected employment metrics suggest sustained consumer spending power, supporting corporate earnings visibility in these high-beta sectors.