Asian Markets Wobble after Mixed US Jobs Report

Last week was a rollercoaster for global markets. Investors in the United States and Asia were jolted by several worrying signs, including a downgrade of the U.S. credit rating, an increase in Treasury yields, and China's lack of a decisive action to spur its economy.

While U.S. inflation appears to be easing and parts of the economy may be slowing, markets still expect that the Federal Reserve will raise interest rates at least once more this year.

Friday’s U.S. jobs report revealed that the number of new jobs created last month was lower than expected, leading some analysts to believe that the central bank may decide not to raise rates.

However, that optimism was tempered by strong wage growth, which reinforced the view that the economy could handle further tightening. Traders now see a 40% chance that the Fed will hike rates again this year.

Wall Street's turbulent week ended on a down note, with the three major indexes—the Dow, Nasdaq, and S&P 500—all closing in the red on Friday after a late pullback from an early rally.

Asian markets also got off to a shaky start this week, with no clear direction. Tokyo's Nikkei 225 ended flat at 32,190.31. Hong Kong's Hang Seng Index was slightly down 0.1% at 19,514.74, and Shanghai's Composite fell by 0.5% to 3,270.35. In contrast, Sydney and Wellington dipped, while markets in Singapore, Taipei, Manila, and Jakarta all showed gains.

These mixed signals from various global markets continue to keep traders and investors on their toes, as they attempt to navigate the constantly shifting financial landscape.