BEIJING, April 6 (Bernama-dpa-AFX) -- Asian stocks rose on Monday, even as most regional markets remained closed for holidays, reported dpa-AFX.
While Australia, New Zealand, and Hong Kong celebrate Easter, mainland China and Taiwan celebrate Qingming Festival, the tomb-sweeping holiday.
Regional sentiment was underpinned after all three Wall Street indexes posted strong gains last week on hopes of Iran war de-escalation. The dollar index was steady in Asian trading while gold prices fell below US$4,650 an ounce as stronger-than-expected US jobs data and rising oil prices linked to the Iran conflict dampened hopes for Federal Reserve rate cuts this year.
The March US employment data showed a strong rebound from February's weak numbers. The US economy added 178,000 jobs in March, well above the consensus estimate of 59,000 while the jobless rate dropped to 4.3 per cent from 4.4 per cent, driven by a big drop in labour force participation.
Brent crude prices held below US$110 a barrel in Asian trading, giving up some early gains after reports emerged that the US and Iran are engaged in indirect negotiations to explore a potential 45-day truce that could lead to a more permanent resolution to the conflict. The diplomatic push came after US President Donald Trump renewed his threat to attack Iran's bridges and power plants, warning he would bring "Hell" to Iran if they do not open the vital waterway by 8 pm Eastern Time on Tuesday (0000 GMT).
Trump said he plans to hold a news conference "with the Military" at the Oval Office at 1 pm on Monday after US forces rescued a US airman in Iran last week. Tehran condemned Trump's remarks as an "incitement to war crimes" and warned to respond "in kind" to any attacks on its infrastructure. Describing Trump's threats as a sign of desperation and rage, Iran's President's office said the Strait of Hormuz will be reopened only when all war damages are compensated from transit tolls.
Meanwhile, OPEC+ warned after a weekend meeting that war-related damage to energy infrastructure could have lasting repercussions for oil supply even after the conflict subsides. The group has decided to increase oil output by 206,000 barrels per day in May to help address a global supply shortfall, although Iran indicated that Iraq would be exempt from restrictions it imposed on ships passing through the Strait of Hormuz.
Japanese markets closed higher on hopes of an Iran ceasefire. The Nikkei average jumped over 800 points before paring gains to close up 290.19 points, or 0.55 per cent, at 53,413.68. The broader Topix index finished marginally lower at 3,644.80. Tech stocks topped the gainers list, with chip-testing equipment maker Advantest rising 1.7 per cent and technology investor SoftBank Group gaining 1.1 per cent.
Benchmark Japanese government bond (JGB) yields surged to multi-decade highs today, with the benchmark 10-year JGB yield rising by 2 basis points (bps) to 2.400 per cent, the highest since February 1999, driven by escalating inflation risks from the West Asia conflict. The five-year yield rose by 2 bps to 1.815 per cent.
Seoul stocks rallied on robust US jobs data and new hopes for a swift end to the West Asia conflict. The Kospi average surged 73.03 points, or 1.36 per cent, to 5,450.33. Samsung Electronics jumped 3.7 per cent ahead of its preliminary first-quarter report due on Tuesday, with some analysts expecting its operating profit to surpass the 40-trillion-won (US$26.65-billion) mark for the first time. Shares of Poongsan, a leading producer of copper alloys, soared nearly 13 per cent following reports that Hanwha Aerospace is seeking to take over its ammunition business.
-- BERNAMA-dpa/AFX
