HONG KONG, Oct 11, 2021 (BSS/AFP) - Most Asian markets rose on Monday to
extend last week's rally after US lawmakers averted a painful debt default,
while another jump in oil prices added to inflation concerns as the Federal
Reserve prepares to taper its ultra-loose monetary policy.

  A big miss on US jobs creation last month did little to change expectations
that the Fed will start winding back its massive bond-buying programme as it
looks to keep a cap on price rises just as the global recovery shows signs of
slowing.

  The US Labor Department said just 194,000 new posts were taken up last
month, less than half what was forecast, owing to weakness in the service
sector, though there was an upward revision to gains in the previous two
months.

  "Notwithstanding the soft payrolls headline, the inner strength in the
report suggests the numbers have passed the Fed's test for a 'reasonable
enough' report to allow for a... tapering announcement in November," said
National Australia Bank's Rodrigo Catril.

  Wall Street's three main indexes ended in the red, but Asia fared much
better in early exchanges on Monday.

  Tokyo was boosted after new Prime Minister Fumio Kishida said he was not
considering hiking capital gains tax any time soon, soothing investor worries
that the government was planning such a move.

  Hong Kong jumped two percent with tech firms enjoying some much-needed
buying after China fined food delivery giant Meituan less than expected over
monopolistic practices. The firm was up more than seven percent, while
ecommerce giant Alibaba added more than six percent.

  Shanghai, Singapore and Manila also enjoyed healthy gains, though Sydney
and Wellington dipped.

  The broad advances built on Friday's positive performance that came in the
wake of news that Democrats and Republicans had agreed a deal to lift the US
debt ceiling to avoid an economically catastrophic default.

  Attention will be on the release of inflation data out of China this week,
with the surge in prices across the world becoming increasingly problematic
for governments as economies reopen and demand for goods returns with
supplies limited.

  The issue has raised speculation that the planet could be heading for a
period of stagflation as inflation surges and growth stays tepid, especially
with crude still marching higher to sit at multi-year highs.

  However, Kerry Craig at J.P. Morgan Asset Management remained positive.

  "We do have this environment where we have expectations for inflation
rising and expectations for growth falling but I don't think we are going to
be in an environment where we see stagflation becoming entrenched," he told
Bloomberg Television.

  Also in view this week is the start of the corporate earnings season, which
will be closely monitored for an idea about how companies have fared with
rising prices, slowing economic growth, supply chain issues and the spread of
the Delta coronavirus variant.