(Oct 5): Taiwan stocks posted a record closing high on Monday while equities across emerging Asia booked their biggest daily gains in nearly two weeks, after weaker-than-expected US jobs data reduced expectations of imminent policy tightening.

The MSCI emerging markets Asia equities index rose as much as 1.4%, while the EM currencies gauge ticked up 0.3% to hit its highest since Sept 23.

The US jobs report on Friday showed hiring growth slowed more than forecast in September, while the figures for July and August were revised sharply lower, further reducing expectations that the Federal Reserve will raise interest rates this month.

Swaps imply a less than 20% chance of a Fed rate hike this month. However, the odds rise to nearly 70% for an increase in December, according to CME's FedWatch tool.

"The falling rate-hike bets are mechanical relief for Asian risk assets in the near term — lower US yields narrow the rate differential pressure that's been pulling capital toward the dollar all year... for equities, that supports a near-term bounce, particularly in rate-sensitive sectors like tech," Pepperstone research strategist Dilin Wu said.

Taiwan stocks finished up 2.6% at 49,712.04, their highest close to-date. The tech-heavy bourse alone makes up about a quarter of the MSCI regional equities gauge. Semiconductor major TSMC surged as much as 3.2% to a record high.

Stocks in Manila rose as much as 1%, while Singapore shares gained up to 0.7%. Markets in South Korea were closed for a public holiday.

Most regional currencies appreciated against the euro, which slid to a 17-month low on fiscal concerns in France following a steep bond market rout.

"On the FX market, weakness in the euro on the back of European political and fiscal concerns have led to a stronger US dollar, which is weighing on some Asian currencies to start the week," said Khoon Goh, head of Asia Research at ANZ.

In Brazil, markets were expected to jump on Monday after Sunday's first-round vote paved the way for right-wing Senator Flavio Bolsonaro to face leftist President Luiz Inacio Lula da Silva in a run-off of the presidential election later this month.

The Brazilian real ended Friday higher at 5.2132 per US dollar. The currency, however, hovered near its mid-August low of 5.2223.

Uploaded by Magessan Varatharaja