World shares mostly gain after Wall Street wobbled over strong jobs report

Global Markets Rally as Japan and South Korea Hit Record Highs Following U.S. Jobs Data

World markets showed strong performance on Thursday, with benchmarks in Asia reaching new records following a mixed session on Wall Street after better-than-expected U.S. employment figures.

In early trading, U.S. futures pointed higher, with the S&P 500 future rising 0.3% and the Dow Jones Industrial Average future advancing 0.4%. European markets also opened positively, with Germany’s DAX leading gains at 1.3% to reach 25,169.49, while France’s CAC 40 added 1% to 8,398.82. Britain’s FTSE gained a more modest 0.3% to 10,502.20.

Asian markets displayed notable strength, particularly in South Korea where the Kospi index surged past the 5,500 mark for the first time in its history, closing up 3.1% at 5,522.27. The rally was fueled by technology stocks, with market heavyweight Samsung Electronics jumping 6.4% and chipmaker SK Hynix adding 3.3%.

In Japan, the Nikkei 225 briefly topped 58,000 before settling virtually unchanged at 57,639.84 as trading resumed after a holiday. The benchmark has been on an upward trajectory following Prime Minister Sanae Takaichi’s decisive victory in Sunday’s parliamentary election, with investors anticipating pro-growth economic policies.

Chinese markets showed mixed results, with Hong Kong’s Hang Seng falling 0.9% to 27,032.54, while mainland China’s Shanghai Composite edged marginally higher to 4,134.02. Australia’s S&P/ASX 200 gained 0.3% to 9,043.50.

The previous day on Wall Street saw muted trading, with the S&P 500 finishing essentially flat after initially approaching a record high. The Dow Jones Industrial Average slipped 0.1% to 50,121.40, while the technology-heavy Nasdaq composite dropped 0.2% to 23,066.47.

Investor sentiment was influenced by the U.S. Labor Department’s report showing employers added 130,000 jobs in January, significantly exceeding economists’ forecasts. This robust employment data has market watchers reassessing expectations for Federal Reserve monetary policy.

“The blockbuster U.S. non-farm payrolls report strengthens the case for higher U.S. Treasury yields and a rebound in the dollar over the coming months,” noted Jonas Goltermann, deputy chief markets economist at Capital Economics. The strong labor market data suggests the chance of another Fed rate cut in the near term is “quite low,” according to analysts.

Several notable U.S. stocks saw significant moves on Wednesday. Robinhood Markets fell 8.8% as investors responded to slowing cryptocurrency trading activity. Bitcoin has recently declined to roughly half its record value set in October. Moderna dropped 3.5% after the FDA declined to review its application for a new flu vaccine, while Kraft Heinz edged up 0.4% after announcing a pause on plans to split into two businesses.

The energy and raw materials sectors performed well, with Exxon Mobil gaining 2.6% and Smurfit Westrock surging 9.9%.

In commodities, oil prices edged lower on Thursday, with U.S. benchmark crude declining 15 cents to $64.48 per barrel and Brent crude, the international standard, falling 16 cents to $69.24. Precious metals also retreated slightly, with gold down 0.1% to $5,093.60 per ounce and silver falling 0.5% to approximately $83.50 an ounce.

Currency markets saw the U.S. dollar weaken against the Japanese yen, trading at 152.84 yen compared to 153.27 previously. The euro strengthened slightly to $1.1888 from $1.1873.

The market movements reflect ongoing adjustments to economic data as investors navigate changing expectations for growth, inflation, and central bank policies across major economies.