Japanese stocks advanced as the yen weakened against the dollar after a better-than-expected U.S. jobs report boosted the odds that the Federal Reserve will raise interest rates next month.
The Topix index added 0.8 percent to 1,575.57 as of 9:01 a.m. in Tokyo, extending a 14 percent surge from an eight-month low on Sept. 29. The Nikkei 225 Stock Average climbed 0.7 percent to 19,391.84. The yen traded at 123.22 per dollar after dropping 1.1 percent on Friday as the best monthly U.S. employment report of the year pushed odds for an interest-rate hike in 2015 to 68 percent.
American employment in October jumped by the most this year, wage growth accelerated and the jobless rate fell to 5 percent, the report showed. It came after Fed Chair Janet Yellen said she sees the economy firming and officials are prepared to raise their target rate as soon as December.
The U.S. economy has reached at least one measure of full employment and the decision to keep interest rates near zero in October was a close one, John Williams, president of the Federal Reserve Bank of San Francisco, said at the weekend. He told reporters later that he’s waiting to see incoming data before making predictions about a rate increase at the Dec. 15-16 Fed meeting in Washington.
Source : Bloomberg