Asian stocks rose early on Monday after the prospect of an imminent interest rate hike by the Federal Reserve faded after Friday's weaker-than-expected U.S. employment data. U.S. stock indexes jumped over 1 percent on Friday as worries about the economy after the disappointing jobs report gave way to a robust rally in energy and materials stocks. "Risk aversion weakened today as a weak U.S. employment data supported expectations that the Fed would put off the timing of rates hike," said Kim Young-jun, a stock analyst at SK Securities in Seoul.
The global market volatility of the past month that sent U.S. stocks to their worst quarter in four years shows no signs of letting up just because the calendar turned to October. Investors say they are bracing for another leg down in the S&P 500 stock index despite its positive showing last week by increasing cash and other defensive positions in their portfolios. "Do I think we go into a bear market?