Asian markets rally on good U.S. data; Dollar, stronger

Asian markets have advanced on Monday, supported by the unexpected decline on U.S. unemployment in the U.S on Friday. The Dollar trades at higher levels.

Tokyo Nikkei Index rose 1.4%, reaching its highest level since October last year, while Hong Kong's Hang Seng Index rose 2.2%. South Korean Kospi Index remained little changed, whole markets in Australia and India rose.

Investors' confidence has been buoyed by positive employment data in the U.S.The unemployment rate declined in July for the first time in the last 15 months, showing signs of stabilization on U.S. labour markets, which is considered a crucial element for the improvement of consumer spending, which, is one of the biggest contributors of the nation's GDP.

Dollar rallies on employment recovery

EUR/USD dropped on Friday from levels around 1.4350 to levels right above 1.4150 right after Non-Farm payrolls data was released. During Asian session, the Pair has edged up from opening levels around 1.4180 to 1.4215, although the Euro has eased and trades at 1.4200 at the time of writing.

The Pound dropped aggressively from the 1.7000 resistance area after the release post Non-Farm payrolls, to find support at 1.6150, and bounce during Asian session to a maximum level at 1.6715 to drop back to 1.6670 at the moment of writing.

USD/JPY soared on Friday from 95.00 to 97.70 resistance area on the back of July's Employment Report, although the pair has eased during Asian session, to trade in range between 97.00 and 97.40.