Emerging Markets stocks rise as investors seize on weak US jobs data

Indonesian equities `.JKSE` slipped 0.69%, seesawing through the day as President Prabowo Subianto nominated Destry Damayanti as the sole candidate to be the next central bank governor. Destry, the central bank's second most senior official, could help soothe jitters after the sudden departure of Governor Perry Warjiyo, who resigned late last month citing personal reasons. The rupiah `IDR=` hit its highest in more than seven weeks, and was last up 0.75% against the dollar. South Korea's KOSPI index `.KS11`, which has become emblematic of the rapid shifts in AI sentiment, secured a modest 0.65% gain after a seven-week losing streak. China's Shanghai Composite Index `.SSEC` rose 0.67%. Producer price inflation eased more than expected in July to its weakest in three months, while consumer inflation also cooled, according to official data released on Sunday. The data partly reflected the "loss of domestic economic momentum," according to Jim Reid, Deutsche Bank's head of global macro and thematic research. In Europe, Romanian equities `.BETI` rose 0.89% ahead of the central bank's interest rate decision. Analysts polled by Reuters expected rates to stay on hold. Equities in Poland `.WIG`, a regional heavyweight, were 0.23% higher. However, Europe is battling record heat and droughts this summer, and analysts say the hit to the region's economy could be in the range of hundreds of billions of euros. Over the weekend, Tehran reiterated that it would not reopen the Strait of Hormuz until Washington met certain demands, potentially keeping oil prices elevated and inflation risks front and centre. The U.S.-Iran war, now in its sixth month, has shown few signs of easing despite stop-start diplomatic efforts. The "fragile labour market implies (that the) FOMC can let the energy price shock pass," said Samuel Tombs, Pantheon Macroeconomics' chief U.S. economist, referring to the Federal Open Market Committee, the body of Fed policymakers which decides rates. "Investors are getting fatigued over the Iran situation. It's become very unpredictable," said Louis Navellier, chief investment officer at Navellier & Associates. Analysts have warned against discounting the risk from oil prices, as just one weak labour market reading may not be enough to convince the Fed to shift its focus away from inflation threats. "Significant hurdles remain before any broader agreement is reached," wrote ING strategists. Investors will also scrutinise fresh inflation data in the U.S. this week. Economists polled by Reuters expect CPI to rise 3.4% on a year-over-year basis. Emerging market stocks rose on Monday after a softer U.S. jobs report quelled fears of higher interest rates and reignited risk appetite in some pockets, offsetting concerns over the future trajectory of oil prices. EM investors took cues from Wall Street, where the S&P 500 `.SPX` closed at a record high on Friday after the July payrolls figures lowered the odds of a Federal Reserve interest rate hike. MSCI's gauge of EM equities `.MSCIEF` rose 0.73%, after declining last week. Its corresponding currencies gauge `.MIEM00000CUS` traded 0.11% higher. The gains illustrate investors' eagerness to latch on to any data that may prompt a dovish tilt at the Fed.

Emerging Markets stocks rise as investors seize on weak US jobs data

Mixed moves across Asia and Europe

Oil risks and Iran tensions remain a concern

Emerging market stocks and currencies rise on softer U.S. jobs data

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