Global Markets:
- Asian Stock Markets : Nikkei up 0.17%, Shanghai Composite up 0.45%, Hang Seng up 0.28%, ASX down 0.25%
- Commodities : Gold at $2023.90 (-0.57%), Silver at $25.13 (+0.37%), Brent Oil at $84.94 (-0.06%), WTI Oil at $80.47 (-0.17%)
- Rates : US 10-year yield at 3.305, UK 10-year yield at 3.433, Germany 10-year yield at 2.174
News & Data:
- (USD) ISM Services PMI 51.2 vs 54.3 expected
- (USD) ADP Non-Farm Employment Change 145K vs 208K expected
Markets Update:
Asian stock markets were mixed on Friday as investors awaited the release of US jobs data that could provide clues on the Federal Reserve’s monetary policy stance. The closely watched non-farm payrolls report is expected to show a slowdown in hiring in March, amid signs of cooling economic activity and rising inflation.
Analysts said a strong reading could boost market sentiment and ease fears of a recession, but also increase the pressure on the Fed to raise interest rates more aggressively. A weaker-than-expected figure, on the other hand, could fuel concerns about the health of the world’s largest economy and prompt the Fed to pause its tightening cycle.
The Shanghai Composite Index rose 0.4% to 3,324.39, supported by gains in consumer and health care stocks. The index was also lifted by news that China’s economy grew 4.8% in 2023, according to the Asian Development Bank (ADB), faster than its previous forecast of 4.6%. The ADB said China’s reopening after containing the coronavirus pandemic had brightened the growth outlook for developing Asia.
The Nikkei 225 in Tokyo edged down less than 0.1% to 27,466.88, weighed by losses in technology and energy stocks. The Japanese market was also cautious ahead of a meeting between Prime Minister Shinzo Abe and US President Donald Trump in Washington later in the day, where trade and security issues are expected to top the agenda.
The Kospi in Seoul jumped 1.3% to 2,490.37, led by a rally in Samsung Electronics, which surged 4.5% after announcing plans to cut chip production due to weak demand. The move was seen as positive for the semiconductor industry, as it could help ease oversupply and boost prices.
Markets in Hong Kong, India and Australia were closed for public holidays.
On Wall Street, the S&P 500 rose 0.4% on Thursday to 4,105.02, while the Dow Jones Industrial Average added less than 0.1% to 33,485.29. The Nasdaq Composite gained 0.8% to 12,087.96, boosted by gains in Facebook, Amazon and Netflix.
The US dollar index, which measures the greenback against a basket of six major currencies, was little changed at 97.32. The dollar was steady against the yen at 111.76 and slightly lower against the euro at 1.1235.
Gold prices were flat at $1,291.80 an ounce, as investors awaited cues from the US jobs data and Fed policy. Gold is often seen as a hedge against inflation and currency weakness.
Crude oil prices were also stable at $62.10 a barrel for Brent and $52.50 for WTI, as supply cuts by OPEC and its allies balanced concerns about slowing global demand.
Upcoming Events:
- 12:30 PM GMT – (USD) Average Hourly Earnings m/m
- 12:30 PM GMT – (USD) Non-Farm Employment Change
- 12:30 PM GMT – (USD) Unemployment Rate
