The Nikkei 225 index had closed for business when Friday’s Non-farm Payrolls (NFP) report hit the markets. However, the Nikkei 225 futures traded higher when traders digested the numbers. Apparently, the disappointment of the lower-than expected employment change was offset by the unemployment rate of 3.5%. The unemployment rate was not just lower than expected, it was the lowest this figure has been in 50 years.
This explains why the NFP did not provide the knockout blow that markets expected, after poor manufacturing and services PMI data from the ISM. The Nikkei 225 futures are now open for trading and start the week in green territory.
An analysis of the jobs numbers shows that despite the shortcomings in the employment change, the job growth rate remains at a level that will permit the job market to expand, thus accommodating new entrants.