* S&P futures up 0.6%, Mexico peso up 1.6%
* Weak U.S. payrolls data bolster Fed rate cut expectations
* U.S. money market futures price in 2 rate cuts this year
* Asian stock markets: tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, June 10 (Reuters) - U.S. stock futures jumped on Monday after a migration deal between the United States and Mexico late last week to avert a tariff war added to a weak U.S. job data which cemented expectations of Federal Reserve rate cuts.
S&P500 mini futures rose 0.6% in early trade while Japan's Nikkei looks set to gain 1.5 percent, based on Chicago-listed futures price.
U.S. Treasuries futures dropped 13/32 in price while U.S. interest rate futures gave back gains made after Friday's soft payroll data.
The Mexican peso jumped more than 1.5 percent in early Monday trade to 19.2895 on the dollar after the migration deal between U.S. and Mexican negotiators removed President Donald Trump's threatened tariffs on goods from Mexico for now.
The improved risk sentiment also helped lift the dollar against the yen 0.2% to 108.45 yen.
"The deal with Mexico is boosting sentiment while expectations of U.S. rate cuts will be also supporting share prices," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.
"Still, with limited progress seen so far in U.S-China trade talks, the most important issue for markets, stock prices will be able to rise only so much," he added.
On the whole, the dollar was undermined by rising expectations the Fed will cut rates in coming months.
A U.S. Labor Department report showed nonfarm payrolls increased by 75,000 jobs last month, much smaller than the 185,000 additions estimated by economists in a Reuters poll, suggesting the loss of momentum in economic activity was spreading to the labour market.
The Fed funds rate futures are still pricing in more than two 25-basis point rate cuts by the end of this year even after their retreat early on Monday following the U.S.-Mexico deal.
The euro was little changed at $1.1329 near a 2-1/2-month high of $1.1348 touched on Friday. The common currency held firm near five-month highs against sterling at 88.965 pence.
The offshore Chinese yuan traded at 6.9385 yuan per dollar , having hit a seven-month low of 6.9616 on Friday.
China's trade data due later in the day will be keenly watched for the impact of intensifying frictions between Washington and Beijing.
Group of 20 finance leaders on Sunday said that trade and geopolitical tensions have "intensified", raising risks to improving global growth, but they stopped short of calling for a resolution of the deepening U.S.-China trade conflict. (Editing by Shri Navaratnam)