Economic Recovery Hopes Boost Asian Markets Despite U.S. Policy Concerns

Asian share markets experienced a lift on Monday as the growing anticipation of lower borrowing costs eased some worries about the U.S. economy. Wall Street and European stock futures saw a rebound, helping to stabilize the dollar following its downturn last Friday driven by U.S. payrolls data.

Treasuries faced some profit-taking after their significant gains, yet expectations remain high for the Federal Reserve to reduce rates in September. This optimism is despite a dire U.S. payrolls report showing a substantial slowdown in jobs growth, pointing to potential policy changes by the Fed.

Meanwhile, the credibility of U.S. economic policies is questioned, especially with President Trump's recent firing of the head of Labor Statistics. The ongoing politicization of interest rate policies adds to uncertainty, as analysts suggest Trump's Federal Reserve appointee might heavily favor his viewpoints.