European and Asian Stocks Push Higher with U.S. Markets Closed for Labor Day

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Japanese stocks rose for a second day following news that PM Suga would resign.

(Jiji Press/AFP via Getty Images)

Global stocks climbed higher on Monday as markets in the U.S. were closed in observance of the Labor Day holiday.

In Asia, Tokyo’s

Nikkei 225

surged 1.83% while the Hong Kong

Hang Seng Index

lifted 1.01%. The

Shanghai Composite

increased 1.12%.

In Europe, London’s

FTSE 100

was 0.5% higher as the pan-European

Stoxx 600

ticked up 0.6%. Both Paris’

CAC 40

and the


in Frankfurt moved 0.6% into the green.

U.S. futures, which continue trading even while markets are closed, were higher. Futures for the

Dow Jones Industrial Average

pointed up around 75 points, with

S&P 500



futures similarly upbeat.

Overseas markets climbed Monday following Friday’s key U.S. jobs report, which fell short of expectations

Investors are paying especially close attention to jobs data, as the U.S. Federal Reserve has indicated that it will keenly watch employment while it mulls slowing, or tapering, its pandemic-era measures to add liquidity to markets.

Also read: A Weak Jobs Report Puts Fed in a Bind as It Stares at Stagflation

Plus: Anatomy of a Miss: The August Jobs Report

“Friday’s U.S. employment data substantially lowered the risks of a Fed taper this year, which is playing out well in Asian equity markets this morning,” said Jeffrey Halley, an analyst at broker OANDA. Analyst Russ Mould of broker

AJ Bell

noted that the buoyancy in European stocks was also linked to the data from the end of last week.

Japanese stocks outperformed, continuing the march higher after surging more than 2% on Friday, following the news that prime minister Yoshihide Suga would resign.

“His departure also opens up the prospect that a new leader will embark on a new stimulus program, with one of the main challengers and front runner Fumio Kishida pledging a new program of measures worth trillions of yen,” said Michael Hewson, an analyst at broker CMC Markets.

In Germany, investors welcomed data showing that manufacturing orders rose in July to the highest levels since records began in 1991—up 24.4% year-over-year on an adjusted basis.

Crude prices fell, with international benchmark Brent crude down more than 3% since Friday to just above $72-a-barrel, after Saudi Arabia cut crude prices to Asian customers by more than expected.

Headline economic data in the week ahead includes U.S. job openings—JOLTS—for July on Wednesday, followed by the producer price index (PPI) on Friday. In Europe, the European Central Bank will release a monetary policy decision on Thursday.