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 Labour 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 stabilising.

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, Seoul and Taipei each piling on more than one per cent, while Shanghai jumped 0.6 per cent.

Sydney was 0.3 per cent up, Singapore added 0.1 per cent, Bangkok jumped more than one per cent, Mumbai edged up 0.2 per cent and Wellington climbed 0.4 per cent.

There were also healthy gains in Manila. 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".

"Everyone is kind of upbeat around the prospect of at least a partial China-US trade deal," Peter Dragicevich, a strategist at Suncorp Corporate Services, told Bloomberg TV.

"It's going to keep equities pretty supported."