Asian stocks cheer US jobs data, Nikkei awaits technical breakout

Stock markets across Asia advanced on Monday after the Friday’s non-farm payrolls number bettered estimates, pushing the Dow index higher for the ninth straight day. 

MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.2%. Japan’s Nikkei added 119 points or 0.60%. South Korea’s Kospi rose 0.3% and the Australian shares strengthened 0.8%. 

The data released on Friday showed the US economy added 209,000 jobs last month. June's employment gain was revised higher as well. Wage growth ticked higher to 0.3% m/m in July as expected. 

Growing signs of labor market tightness might force the markets to change its interest rate pricing. As of now, the investors are pricing in an even chance of an interest rate hike in December.

Nikkei Technical Levels    

Japan’s Nikkei index awaits descending triangle pattern breakout. The index tested the 10-DMA level of 20,030 before recovering losses to trade around 20,070 levels. The 50-DM stands at 20,045 levels.