Stocks in Asia were lower in Monday morning trade after a strong jobs report last Friday stateside moderated expectations that the U.S. Federal Reserve could soon be making a move on interest rates.
Over in South Korea, the Kospi dropped 1.02%, as shares of industry heavyweight Samsung Electronics and SK Hynix fell 1.97% and 2.05%. respectively.
The moves came as Tokyo and Seoul remain locked in a dispute over forced wartime labor, with Japan imposing tighter restrictions last week on the export of high-tech materials used in smartphone displays and chips to South Korea.
Meanwhile, the S&P/ASX 200 in Australia. declined 0.35%.
Asia-Pacific Market Indexes Chart
Last Friday, the U.S. jobs report showed the economy stateside adding 224,000 jobs in June, well above the forecast number of 165,000 jobs by economists in a Dow Jones survey. That came following a dismal jobs print in May.
“The solid US payrolls report dampened Fed rate cut expectations and severely dented the argument for a 50bps rate cut by the end of the month. Effectively the debate has now switched from a 25bps or 50bps rate cut to a 25bps cut or none,” Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a note.
Still, Catril said, the Fed could “look for a couple of insurance cuts” in July and September.
The strong jobs numbers sent Treasury yields upward, with the benchmark 10-year yield crossing the 2% mark.
The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 97.236 after surging from levels below 96.8 last Friday.
— Reuters contributed to this report.