Asian stock markets opened higher Monday, taking heart from an impressive lead from Wall Street and China rolling out its third interest rate cut since November. In Japan, shares of Sharp are in focus after plummeting nearly 30 percent following a capital-reduction report.
On Sunday, the People’s Bank of China (PBOC) announced a cut in its benchmark lending rate and one-year deposit rates by 25 basis points, effective on May 11, as growth in the Asian economic giant slowed to levels not seen since the global financial crisis.
U.S. stocks finished sharply higher end of last week as investors welcomed a “Goldilocks” jobs report. April’s U.S. nonfarm payrolls report showed a rebound in job growth to 223,000, but slower wage growth at just a tenth of a percent. The improvement from March’s 85,000 jobs calmed some nerves over the state of the U.S. economy, but wage growth was not enough, in the eyes of most traders, to warrant central bank tightening immediately