sydney june 5 reuters  asian shares extended a global rally on monday on optimism the federal reserve would pause its rate hikes this month after a mixed us jobs report while oil jumped as saudi arabia pledged big output cuts in july brent oil jumped 182 or 24 to 7795 a barrel while us crude climbed 177 or 24 to 7351 oil prices have recently come under pressure amid heightened concerns about chinas slowing economic recovery oil rose as saudi arabia announced it would cut its output to 9 million barrels per day in july from around 10 million bpd in may the biggest reduction in years while a broader opec deal to limit supply into 2024 also underpinned futures with saudi arabia protecting oil prices from sliding too low  we think oil markets are now more prone to a shortfall later this year said vivek dhar a mining and energy commodities strategist at commonwealth bank of australia we think brent futures will rise to us85bbl by q4 2023 even with a tepid demand recovery in china factored in on monday japans nikkei n225 surged 1 to a 33year high australias resourcesheavy shares axjo gained 1 and south koreas kospi ks11 rose 05 sp 500 futures dipped 01 and nasdaq futures dropped 03 in asian hours after a strong rally on friday driven by a mixed us jobs report a resolution to the debtceiling issue and the prospect of a us rate pause this month the techheavy nasdaq ixic rose 1 on friday and posted its sixthstraight week of gains that marked its best winning streak since january 2020 while the dow jones dji gained 2 and the sp 500 spx added 145 data on friday showed us economy added 339000 jobs last month higher than most estimates bolstering expectations of fed hikes in july with markets tipping a 50 chance for that however moderating wage growth and rising jobless rate in fridays jobs report argued for a case of pause in june markets are still leaning towards a rate pause from the fed at the next policy meeting but have priced out almost any chance of a rate cut by the end of this year yields on us twoyear treasuries surged 162 basis points on friday to 4503 and tenyears rose 8 bps to 36903 in part driven by fitch ratings saying the us aaa credit rating would remain on negative watch despite the debt agreement that in turn helped the dollar gain 05 on friday and stay elevated at 10416 against its peers early on monday the greenback jumped 08 on japanese yen to 13994 while the euro eased 05 to 10706  the australian dollar was an outperformer against a strong greenback up 05 to 06605 on bets that the reserve bank of australia will have to raise rates higher and for longer on domestic wage pressures the rba will hold a policy meeting on tuesday in the wake of a strong increase in the minimum wages for the next financial year markets are now split on whether it would hold rates steady or hike it further to 41 the bank of canada will meet on wednesday a majority of economists polled by reuters expect the boc to keep interest rates on hold at 45 for the rest of the year but the risk of one more rate hike was high