Shares in Shanghai traded higher Monday, lifting some markets in Asia, although investors were nervous that China's mainland market remained a potential source of volatility for the region.
The Shanghai Composite was last up 1.6%, as mainland markets reopened after a long weekend. The Nikkei Stock Average was up 0.8% and Korea's Kospi was up 0.4%.
Currencies were under pressure with the Malaysian ringgit and Singaporean dollar hitting fresh lows earlier, after the U.S. jobs report failed to provide much clarity on when the U.S. Federal Reserve will raise short-term interest rates. Higher interest rates in the U.S. are likely to give the dollar a boost, as they make the currency more attractive to yield-seeking investors.
"Trading in Asia today will be driven by two major factors: The delayed response to Friday's nonfarm payrolls (NFP) number out of the U.S. and the reopening of the Chinese stocks markets after a four-day break," said Angus Nicholson, market analyst at IG in a morning note. Markets in China were closed for a national holiday on Thursday and Friday.
Worries about higher U.S. interest rates are adding to fears that China's market, down nearly 40% from its peak in June, is signaling a worse slowdown in China's economy than investors had thought. Last week, the Nikkei Stock Average fell 7%, the worst performing stock benchmark in Asia. China shares came out relatively unscathed last week, helped by a shortened trading week and government-led stocks buying.
Fears that Chinese markets will continue to drive volatility in the region persisted even after soothing comments from the governor of China's central bank over the weekend. The "correction in the stock market is almost done" and China's financial markets are expected to become "more stable" after the Chinese yuan steadies following a devaluation last month, said Zhou Xiaochuan in remarks to central bankers and finance ministers from the Group of 20 largest economies on Saturday.
Most shares were higher, but Australia's S&P/ASX 200 was down 0.4%.
The Malaysian ringgit hit a fresh 17-year low against the U.S. dollar, which traded as high as 4.3090 ringgit. The ringgit was last down more than 1% from its level late in Asia on Friday. It has hit a string of lows recently, as the prospect of a rate increase in the U.S. draws near, weakening emerging-market currencies broadly.
The Singaporean dollar fell to a fresh six-year low against the U.S. dollar which traded as high as 1.4255 Singaporean dollars. The Singaporean dollar was last up 0.1% from its level late in Asia Friday.
In the U.S., the headline number on August jobs creation missed expectations, but the report provided plenty of positives that investors latched onto, including the unemployment rate falling more than forecast and stronger-than-expected 2.2% growth in average hourly wages.
U.S. stocks fell Friday, capping their second-worst weekly performance of the year.
The Japanese yen was roughly flat after hitting a fresh-four month high against the euro during Asia trade Friday.
The Australian dollar hit a fresh six-year high of $ 0.6893, adding to its gains from last week. It was last up 0.7% from its late level in Asia Friday.
–Corrie Driebusch and Lingling Wei contributed to this article.
Write to Chao Deng at Chao.Deng@wsj.com
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