Asian markets aren’t moving much because strong US jobs data makes it more likely that interest rates will go up.

HONG KONG (AFP) – Asian markets were quiet on Monday because good jobs data from the US confirmed that the economy’s recovery was on track, but it also raised the odds that the Federal Reserve will raise interest rates more quickly in the future.

The gains were aided by another decline in oil prices after the International Energy Agency’s agreement to draw its large reserves to compensate for the loss of Russian shipments, while the establishment of a truce in Yemen alleviated fears about regional supply.

Officials said Friday that the world’s largest economy created 431,000 jobs in March, although the unemployment rate remained only slightly higher than pre-pandemic levels.

Inflation has hit a 40-year high, and the Ukraine crisis has made people more afraid. The numbers show that the recovery is going on.

A stronger economy will show that it can handle a bigger rise in interest rates to fight inflation, and many people now think that the rate will rise by a half-point in May.

Treasury yields, on the other hand, have risen in response to predictions that rates would keep rising, with experts citing signs that growth will slow down as the year goes on.

“It would not be shocking to see yields grow more from here, and it is really difficult to predict where they will fall,” Evergreen Consultants’ Angela Ashton remarked.

“Markets are very volatile, and there is a strong possibility that they may overshoot.”

A bullish Wall Street finish was followed by an optimistic start to the week in Asia.

Chinese technology stocks rose after Beijing lifted a ban on U.S. officials looking into the audits of Chinese businesses that are listed in New York. This helped Hong Kong to make more gains.

During a long standoff between the two countries, Washington warned that Chinese businesses could be delisted by 2024 if they don’t meet auditing standards. This move comes at the end of that time period.

Demand placed over 200 firms at danger, including ecommerce heavyweights Alibaba, JD.com, and Tencent.

Singapore, Sydney, and Seoul all expanded, while Tokyo, Manila, and Jakarta remained stagnant.

Crude prices kept going down on Friday, with WTI still below $100. Members of the International Energy Agency, including the United States, Japan, and the European Union, agreed to dig into their reserves to help with the shortage caused by Russia’s invasion of Ukraine.

A ministerial meeting had to be called because the coalition said it would release more than 60 million barrels of oil last week. Then they said they would do it again.

This comes on the heels of Vice President Joe Biden’s announcement that a record 180 million barrels will be released into the market over the next six months.

A 60-day truce in Yemen’s long civil war came at the same time, giving some relief to people who had been worried about the country’s oil production for a long time.

Experts say that equities and commodity markets have stabilised a little after big changes at the start of the Ukraine conflict, but uncertainty is still a drag and traders are still worried.

“Risk sentiment has been uneven throughout the last week,” said Stephen Innes of SPI Asset Management.

“Market signals may be described as a recurrent cat-and-mouse game in which news about ceasefire negotiations progress are routinely pulled back by Russian officials who dismiss the likelihood of a close peace accord.