Current Futures: Dow -27.00, S&P -3.60, NASDAQ -9.25

Asian markets are trading higher tonight, helped by the positive news coming from the U.S. economy. However, the S&P futures declined 0.30% during the Asian session, as the index bounced from a 4 month high. 

A report showed on Wednesday that the pace of contraction in the labor market had slowed in April. The financial markets expected the ADP report to show a loss of 640K jobs in April, while the release came in better than expected with ”only” 490K jobs lost. Trade Team said that the ADP figures show a pace of contraction in the U.S. and in the global economy is slowing down. Further positive news came during the Asian session, when the unemployment rate in Australia fell unexpectedly by 0.3%, after rising for six consecutive months. 

The financial sector jumped almost 8% on Wednesday, as the unofficial stress test results were leaked one day earlier. Investors interpreted the results as positive, since the Wall Street banks require only a limited amount of fresh capital, which can be raised from private sources Trade Team said. As such, the financials continued the rally in the Asian session, having some banks post double digits gains.

Following three days of Holidays, the Japanese Nikkei soared tonight more than 4%. Almost every sector in the index rallied, with the financial sector on top of the list. Other important gains were observed in the commodity stocks, as crude oil surged 5% during the U.S. session, and in goods manufacturing sales, on positive U.S. employment data. 

Overnight, the Japanese Nikkei surged 383.57 points (4.27%) to 9,360.94. The Australian S&P/Asx gained 84.90 points (2.20%) to 3,952.00.

Crude oil for May delivery was recently trading at $56.25 per barrel, down by $0.10.

Gold for May delivery was recently trading higher by $1.00 to $911.70.