Asian markets has opened on a positive note following Friday’s US equity markets strong upside reversal. Supporting renewed risk appetite is news that China had allowed exclusion of key US agricultural good from tariffs, lowering worries of escalation between US-China on the 15th.
US massive payroll figures indicated the US economy added 266k (well above the 180K consensus) jobs in November. Annual wage growth rose 3.7%, highlighting the upside potential in inflation considering the 3.5% unemployment rate. Elsewhere, the University of Michigan consumer sentiment rose to 99.2 from 97.0 for December. USD rose after six down sessions while treasuries across the curve sold off. Crude oil continues to firm following OPEC+ surprise deep production cuts by about 500k barrels per day next year (driven by Saudi Arabia demand for higher prices amid the Aramco IPO).