Asian shares rose after a successful US jobs report

Asian shares advanced on Monday after a surprisingly strong US jobs report sparked optimism about the economy, sparking a rally on Wall Street.

U.S. futures fell and oil prices also fell.

Japan’s Nikkei 225 index gained 1.8 percent to 39,332.74 after the yen sank against the U.S. dollar. The Japanese currency has shrugged off speculation about the central bank’s interest rate plans since Prime Minister Shigeru Ishiba took office last week. Lower interest rates tend to boost the prices of stocks and other assets, and both Ishiba and the central bank governor have suggested there will be no hikes anytime soon.

Nintendo gained 5% on reports that a Saudi investment fund planned to increase its investment in the Kyoto, Japan-based video game maker.

In a policy speech on Friday, Ishiba said he wants to see wage increases that outpace inflation and will promote investment to create “a virtuous cycle of growth and distribution.” He promised economic support for low-income households and measures for regional revitalization and disaster resilience.

But he has offered no major new initiatives, and his initial public support ratings are around 50 percent or lower, relatively low for a new leader, according to Japanese media. He plans to dissolve parliament on Wednesday for elections on October 27.

After briefly gaining against the dollar, the yen fell late last week. The dollar was trading at 148.45 yen early Monday, down from 148.72 late Friday.

Elsewhere in Asia, Hong Kong’s Hang Seng rose 1.1 percent to 22,977.97 and Seoul’s Kospi rose 1.3 percent to 2,602.23.

Taiwan’s Taiex gained 1.8%.

Markets in mainland China reopen from a week-long holiday on Tuesday, and the government said it plans to outline details of economic stimulus plans at a morning news conference in Beijing. Ahead of the Oct. 1 National Day holiday, policy announcements aimed at reviving the struggling housing market have pushed equity benchmarks well higher and this week could bring more volatility.

“More fiscal stimulus is needed to stabilize the housing market and restructure local government debt, as well as structural reforms to address overcapacity and deflation to turn the economy around,” B of A Securities said in a research note, stressing continuous declines. in home sales, home prices and credit growth.

On Friday, the S&P 500 rose 0.9% and neared Monday’s all-time high, closing at 5,751.07. The Dow gained 0.8 percent to 42,352.75 and the Nasdaq climbed 1.2 percent to 18,137.85.

Leading the way were banks, airlines, cruise ship operators and other companies whose profits stand to benefit most from a stronger economy where people are working and better able to pay for things. Norwegian Cruise Line rose 4.9 percent, JPMorgan Chase rose 3.5 percent, and small-cap Russell 2000 gained 1.5 percent.

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Worries about tensions in the Middle East still cast a shadow, having pushed oil prices sharply higher as the world waits to see how Israel will respond to a missile attack by Iran on October 1.

But U.S. benchmark crude fell 19 cents to $74.19 a barrel early Monday, while Brent crude, the international benchmark, lost 29 cents to $77.76 a barrel.

Treasury yields rose on Friday after the US government said employers added 254,000 more jobs to their payrolls last month than they cut. That was an acceleration from August’s hiring pace of 159,000 and beat economists’ forecasts.

Recent upbeat data on the economy raised hopes that the labor market will hold up after the Fed pumped the brakes on the economy with higher rates to quell high inflation.

The Fed has started to cut interest rates, and Friday’s jobs report was so strong that traders now expect it to cut interest rates by half a point before the end of the year after doing so in September.

In other early Monday trading, the euro was unchanged at $1.0967.