Asian markets rally

9 May, 2021 12:00 AM printer

HONG KONG: Asian markets rallied Friday following a record-breaking finish on Wall Street as traders keenly await a key US jobs report that is expected to reaffirm the recovery in the world’s top economy is blasting ahead.

And in a further sign that the global reflation trade is on track, iron ore prices hit an all-time high, while copper—a yardstick of economic health—is just short of its own peak as demand surges for commodities, particularly from China, reports AFP.

The US jobs figures due later Friday are a major economic indicator and come a day after a forecast-beating reading on unemployment benefits that showed claims fell to their lowest since the coronavirus struck last year and put most of the planet into lockdown. Still, there remain concerns that the expected burst of economic activity this year will fan inflation and force the Federal Reserve to step back from its ultra-loose monetary policies—including record low interest rates—that have helped fuel a more than year-long markets rally.

The Labor Department said applications for aid fell last week to 498,000, lifting optimism that companies were now hiring again as vaccines are rolled out and containment measures eased.