Asian markets rally on strong US jobs data, trade optimism

Asian markets rallied Monday following a forecast-busting US jobs report, and on growing optimism that China and the United States will finally sign off on a mini trade pact.

Investors took their lead from another record-breaking close on Wall Street, which came at the end of a strong week for equities thanks to strong earnings and another Federal Reserve interest rate cut.

The Labor Department said the US created 128,000 net new jobs in October, surpassing the 80,000 expected, while the figure for the previous two months was also revised upwards.

Friday's reading came days after data showed the world's top economy slowed slightly in July-September but not as much as projected, suggesting it is stabilizing.

The figures helped the S&P 500 to a new all-time high, while the Dow moved to within a whisker of its own record.

Asian investors took up the mantle on Monday, with Hong Kong and Seoul each piling on more than one percent, while Shanghai jumped 0.5 percent.

Sydney and Singapore were both 0.3 percent up, Taipei rallied 0.8 percent and Wellington climbed 0.5 percent. There were also healthy gains in Manila and Jakarta. Tokyo was closed for a public holiday.

The upbeat mood was enhanced by comments from Chinese Vice Premier Liu He that indicated trade talks with Washington were on track.

Liu said he had spoken on Friday to US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, with both sides saying the talks were "constructive".