HK stocks slip amid skittishness over US job numbers
Asian shares held their breath on Friday for US jobs data that could prove pivotal for next month's interest-rate decision by the Federal Reserve, while rising oil prices served as a reminder that Middle East tensions remain far from resolved. In Hong Kong, the benchmark Hang Seng Index opened down three points at 25,526 and was 67 points, or 0.26 percent, down at 25,463 in early trades. The tech…
Hong Kong's stock market experienced a dip on Friday, as investors remained uncertain about the upcoming US job figures that could impact the Federal Reserve's interest-rate decision. The benchmark Hang Seng Index started at 25,526 and saw a decline of 67 points, or 0.26 percent, to 25,463 in early trading. The tech index opened higher by 12 points, or 0.26 percent, at 4,833.
On the mainland, the Shanghai Composite Index began at 3,896 and closed down three points, or 0.11 percent, at 8,508. The Shenzhen Component Index was up 42 points, or 0.3 percent, at 14,152, while the ChiNext Index increased by 21 points, or 0.62 percent, at 3,537. In Tokyo, the Nikkei started at 65,746 and ended the session lower, dropping 584 points, or 0.89 percent, to 65,098 at one point during lunchtime due to losses in AI and chip-related stocks.
Despite beating market expectations for first-quarter earnings, SoftBank Group faced a decline. In Seoul, the Kospi opened 68 points, or 1.09 percent, higher at 6,365, but later fell to 6,258, or 0.59 percent, as investors assessed the latest US corporate earnings. The focus shifted to the US payrolls report later in the day, which could significantly influence the interest-rate outlook.
Forecasts predict an increase of 80,000 jobs for July, following a 57,000 gain in June, with the unemployment rate expected to remain unchanged at 4.2 percent. With yields and inflation remaining key risks for stocks, analysts anticipate that Friday's non-farm payroll numbers will have mixed effects. A strong jobs report would support higher-for-longer pricing and potentially push interest rates up, while a weaker-than-expected report might encourage equities as yields ease and expectations for a dovish policy stance rise.
Tensions in the Middle East escalated again when Yemen's Houthis targeted Saudi Arabia, a key oil supplier. Riyadh has warned of imminent coordinated attacks by Houthis and Iran-backed Iraqi militias. Brent crude futures rose 1 percent to $83.38 a barrel after surging 3.8 percent overnight.
Written by urgent.news from RTHK News - Finance's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
