NEW YORK — Global stocks rallied Monday after surprisingly strong U.S. employment data reassured investors that the economy remains healthy enough for the Federal Reserve to do something about that.
U.S. employers added 162,000 jobs in August, nearly triple economists’ expectations, while unemployment held at 4.1%, prompting traders to increase the probability of a September Fed rate hike.
Markets responded enthusiastically.
“This is terrific news,” said equity strategist Bradley Keene. “The economy is stronger than expected, which gives the Fed significantly more room to weaken it.”
Japan’s Nikkei jumped roughly 2%, South Korea’s Kospi gained 3%, and broader Asian shares climbed as investors celebrated evidence that consumers still have jobs, companies are still hiring, and monetary authorities may therefore need to make borrowing more expensive until everyone calms down.
Analysts stressed that the rally was entirely rational.
“If the economy were weak, stocks would fall because that’s bad,” Keene explained. “But if it’s strong, rates go up, which is also bad.”
He paused.
“Fortunately, strong is currently good.”
Investors are now awaiting inflation data later this week to determine whether the economy is doing well enough to require additional corrective action.
Inspired by:
Reuters - "Asia shares bounce, others cautious as oil rises" (September 7, 2026)
