Markets Asia: Asian stock markets in wait-and-see mode ahead of US job data
Weak tech values are pushing down the Japanese Nikkei. Investors are waiting for new impulses on monetary policy in the US.
Asian stock markets displayed mixed reactions on Friday before eagerly awaited US employment data. Traders are anticipating insights into the future interest rate policy of the US Federal Reserve (Fed) from the report released later in the day. Experts forecast around 80,000 new jobs in July, following 57,000 in June, with the unemployment rate remaining unchanged at 4.2 percent.
"Given that bond yields and inflation remain the biggest risks for stocks, we assume that positive employment news will be negatively received at the exchanges," said Michael Feroli, Chief US Economist at JPMorgan. A strong employment surge would support expectations of higher interest rates in the longer term, potentially providing further upward pressure on interest rates.
The current market outlook remains uncertain about a potential rate hike next month. The Nikkei Index in Japan fell by 0.9 percent. Losses in AI and chip stocks offset broader market gains. Despite the overall decline, the Nikkei gained 1.2 percent on a weekly basis, while the Topix index increased by 1.3 percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
