US Adds 254,000 Jobs, Fed Rate Cuts May Slow, Nikkei Up 1.8%

Oct 7, 2024, 03:25 AM

The U.S. economy showed unexpected strength in September, adding 254,000 jobs to payrolls, significantly surpassing analysts' expectations. This robust job growth has led to speculation that the Federal Reserve may slow down its rate cuts, with analysts calling the data a 'game-changer.' The strong jobs report has also revived the 'no landing' scenario, suggesting a stable economic outlook without a significant downturn. Treasury yields surged amid concerns over Fed rate strategies. The news has had a notable impact on global markets, with Japanese stocks, particularly the Nikkei 225, rising sharply by 1.8% to 39,332.74 points, and Nikkei futures up 3.19%. The yen weakened to the 149 level against the dollar, prompting Japan's top currency diplomat, Mimura, to monitor forex moves closely, including speculative activities. The Bank of Japan's rate hike plans face political hurdles, with Prime Minister Shigeru Ishiba signaling opposition to interest rate hikes. Despite these challenges, the BOJ's regional report indicated that price hikes and wage increases are broadening across Japan, driven by labor shortages and rising costs.