SYDNEY : Asian share markets made a stuttering start on Monday and the dollar held firm after a stunning U.S. payrolls report pushed back against talk of recession but also bolstered the case for more super-sized rate hikes.
"Despite sluggish growth and an expected slide to a 0.2 per centm/m July CPI gain, the Fed will likely raise policy rates 75 bps at its September meeting," said Bruce Kasman, head of economic research at JPMorgan. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 per cent, after three sessions of gains. Japan's Nikkei eased 0.3 per cent and South Korea 0.4 per cent.
Bonds also got a safe-haven bid due to unease over Beijing's sabre rattling against Taiwan as China conducts four days of military exercises around the island. "This key data point is a million miles from a current recession, both on a change of employment, and a levels of unemployment basis," said Alan Ruskin, global head of G10 FX strategy at Deutsche Bank.