American equity futures, Mexican peso gain thanks to the agreement between the United States and Mexico

TOKYO (Reuters) – US equity futures jumped on Monday after a US-Mexico migration deal was signed at the end of last week to avoid a tariff war and weak data. on jobs in the United States that has cemented the Federal Reserve's rate-cutting expectations.

The mini S & P 500 futures were up 0.6% early in the session, while the Nikkei in Japan is expected to gain 1.5%, based on the futures prices listed on the Chicago Stock Exchange.

US Treasury bond futures fell 13/32 while US interest rate futures made gains after Friday's wage data.

The Mexican peso jumped more than 1.5% in Monday trading to 19.2895 dollars after the migration agreement between US and Mexican negotiators has for the moment removed the threatened tariffs of President Donald Trump on goods from Mexico.

Improved risk sentiment also contributed to the dollar's rise against the yen by 0.2% to 108.45 yen.

"The agreement with Mexico builds confidence, while US rate cuts will also support stock prices," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"Nevertheless, with the limited progress seen so far in the US-China trade negotiations, which is the most important issue for the markets, stock prices will only increase much," he added. .

Overall, the dollar has been undermined by rising expectations that the Fed will cut rates in the coming months.

A report from the US Department of Labor showed that nonfarm payrolls had increased by 75,000 jobs last month, well below the 185,000 additional jobs estimated by economists in a Reuters poll, suggesting that the loss of payrolls in the United States is expected. economic activity was spreading on the labor market.

Federal rate futures are still forecasting more than two rate cuts of 25 basis points by the end of the year, even after their early withdrawal on Monday after the US-Mexico deal.

The euro has changed little, at 1.1329 dollar near a peak of 1.1338 dollar reached for 2 and a half months on Friday. The common currency held near its five-month high against the pound sterling at 88.965 pence.

The Chinese offshore yuan reached 6.9385 yuan for one dollar, after reaching its lowest level in seven months at 6.9616 on Friday.

China's trade data, expected later in the day, will be closely monitored for the impact of increased friction between Washington and Beijing.

The Group of 20 finance chiefs said on Sunday that trade and geopolitical tensions have "intensified", which could hinder the improvement of global growth, without demanding a resolution of the trade dispute. which is intensifying between China and the United States.

(Graphic: Asian Stock Exchanges – tmsnrt.rs/2zpUAr4)