Asian equity markets advanced Monday morning as a weaker-than-expected U.S. jobs report spurred appetite for risk assets.

The U.S. added 29,000 jobs in September, according to Labor Department data released Friday, falling far short of analysts' expectations for an increase of 84,000. The unemployment rate edged up to 4.2% in September from 4.1% the previous month.

"The main theme was a reversal towards risk-on sentiment as a sharply weaker-than-expected U.S. jobs report eased fears of further tightening" by the Federal Reserve, Commerzbank Research analysts said in a report. "Markets interpreted the data as reducing the likelihood of another rate hike at the Fed's October meeting."

Fed funds futures are pricing in around a 20% probability of a rate increase by the U.S. central bank at this month's meeting, down from close to 30% before the U.S. jobs data release, the analysts added.

Japan's Nikkei Stock Average rose 2.2%, Malaysia's FTSE Bursa Malaysia KLCI added 0.3% and Singapore's FTSE Straits Times Index edged 0.2% higher. Equity markets in South Korea and China were closed for a public holiday.

Crude oil futures declined Monday morning, weighed down by the Group of Seven's crude-oil release plan.

The G-7 agreed to release 100 million barrels of crude oil and fuel from their emergency stocks and not to restrict exports. President Trump on his Truth Social platform said that European nations agreed "to release a massive amount of their heavily stocked Diesel Oil. The process will begin immediately." The G-7 statement said the reserve release would happen over four months.

"This comes after pressure from the U.S., which is now facing domestic shortages after utilizing its own stockpiles over the past six months," ANZ Research analysts said. Also, "Persian Gulf producers continue to push more volumes through the Strait of Hormuz despite the elevated risks to vessels," the analysts added. The strait is a key waterway for oil transport.

Front-month West Texas Intermediate crude oil futures were down 0.7% at $90.51 a barrel and front-month Brent crude oil futures were 0.3% lower at $101.92 a barrel, ICE data showed.