Asian Markets Mixed, Euro Falls After Strong US Jobs Report and French Election Upheaval

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Asian Markets Mixed, Euro Falls After Strong US Jobs Report and French Election Upheaval

Asian Markets Mixed After Strong Jobs Report, Euro Falls After French Election

Asian markets were mixed on Monday following a stronger-than-expected jobs report in the US on Friday. The report showed that the US economy added 272,000 jobs in May, exceeding economists' expectations. However, the unemployment rate rose for the second consecutive month.

The Nikkei 225 index in Tokyo rose 0.5%, while markets in China, Hong Kong, Australia, and Taiwan remained closed for holidays.

In Europe, the euro fell to its lowest level in nearly a month after French President Emmanuel Macron dissolved the National Assembly following a setback in Sunday's parliamentary election. Far-right parties made significant gains in the election, leading to the euro's decline.

US Jobs Report Shows Continued Strength, But Inflation Remains a Concern

The strong jobs report in the US indicates continued strength in the labor market, but it also raises concerns about inflation. The Federal Reserve has been raising interest rates to combat inflation, which has been hovering around 3%. A strong economy could further fuel price increases.

However, economic data from last week suggests that the economy may be cooling. Manufacturing contracted in May, worker productivity is weaker than expected, and job openings are declining. This could lead the Fed to pause its interest rate hikes or even cut rates later in the year.

Wall Street Monitors Retail Earnings, GameStop Slumps

Wall Street has been closely monitoring earnings from retailers, which have shown that consumers are pulling back on non-essential items. Consumer spending has been the main driver of the economy, but inflation is hurting consumers, particularly those with lower incomes.

GameStop, the video game retailer at the center of the meme stock craze, slumped 39.4% after reporting another quarterly loss and announcing plans to sell up to 75 million more shares.

Oil Prices Rise, Dollar Gains

In other market news, US benchmark crude oil gained 23 cents to $75.76 per barrel, while Brent crude rose 28 cents to $79.90 per barrel. The US dollar also rose to 157.12 Japanese yen from 156.83 yen.