South Korea‘s Kospi jumped 1.14 percent at Friday’s open. The rally tracked a broad Wall Street advance after Fed Governor Christopher Waller signaled a rate hold this month.
The benchmark index rose 74.88 points to 6,650. It extended a rebound after a sharp slide earlier this week tied to Middle East tensions.
Waller Comments Cool Rate Hike Worries
Waller made the remarks Thursday, saying he would be inclined to support a hold. He backed keeping rates in the current 3.5 percent to 3.75 percent range at the Feds Sept. 15-16 meeting.
Treasury yields eased on the remarks, feeding into falling rate hike odds tracked on prediction markets this week.
Japan‘s Nikkei 225 and Hong Kong’s Hang Seng also opened higher. South Koreas small-cap Kosdaq index advanced even more sharply.
KOSPI is once again riding Wall Streets momentum. Image Source: Trading View
Thursdays rally set the tone across US markets. The Dow Jones Industrial Average gained 1.18 percent. It was the indexs best day since Aug. 4.
The S&P 500 added 1.06 percent, while the Nasdaq Composite rose 1.4 percent. All three indexes are on pace for a positive week.
Jobs Report Looms as Next Catalyst
Traders are now watching Fridays August nonfarm payrolls report, the same data point that has repeatedly moved risk assets after recent monthly releases.
Economists polled by Dow Jones expect 53,000 jobs added. That compares with a loss of 23,000 jobs in July. Unemployment is expected to hold at 4.1 percent.
José Torres, senior economist at Interactive Brokers, said labor weakness should push the Fed toward easier policy.
Ongoing decreases in employment should be enough for the central bank to start considering the labor side of its mandate when prescribing policy.
— José Torres, Interactive Brokers, CNBC
Torres is also watching next weeks inflation reports. He flagged the consumer price index and producer price index.