The Japanese and other Asian markets reacted positively to better than expected employment data coming from the US last month. Tokyo’s Nikkei 225, the largest market in the region, expanded by 3.8 percent to reach 13,363.18. Also influencing the Asian markets were promises from the Japanese prime minister that he was introducing tax reductions.
The price of a barrel of oil was sustained above $96 as investors’ fears that the US Federal Reserve would end its economic stimulus program were reduced.
The US Labor Department announced that the United States, which is still the world’s largest economy, added 175,000 jobs to its economy in May, about 10,000 more than had been predicted.
“The relief from U.S. jobs was palpable,” said Mizuho Corporate Bank in a report. It said gains were “gentle enough to avert concerns” that the Fed might be tempted to halt its “quantitative easing.”