US jobs miss douses Fed hike bets, Asian equities choppy

A weak US employment print has sharply reduced the probability of a July rate hike, sending mixed signals through Asian markets and pressuring Treasury yields.

By Handelsavisen Newsroom · Automated 2026-07-03 02:56 UTC · 1 min read

Asian equity markets opened with mixed signals on Wednesday, as investor sentiment diverged sharply between sectors.

MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses, edging up 0.1% after two consecutive days of declines.

The Labor Department reported that the US economy added only 57,000 nonfarm payrolls, a figure that fell well short of consensus estimates and signaled a cooling labor market.

The choppy start reflects a market recalibrating to a sudden shift in Federal Reserve policy expectations.

The catalyst was a lukewarm US jobs report that significantly dampened expectations for an imminent interest rate increase.

Traders have sharply reduced bets on a Federal Reserve rate hike in July following the release of disappointing US employment data.

The Labor Department reported that the US economy added only 57,000 nonfarm payrolls, a figure that fell well short of consensus estimates and signaled a cooling labor market.