With equities generally down and Treasury rates close to three-month highs on Friday, Asian markets began what might be a historic month cautiously as investors awaited U.S. jobs data, even if a rate cut next week is all but guaranteed.
Ahead of Tuesday's U.S. presidential election and the Federal Reserve's policy meeting the following day, attention is on Friday's nonfarm payrolls data.
Following their overnight selloff, Nasdaq futures increased by 0.5% as a result of Amazon's 5.3% post-bell gain, which increased its market capitalisation by $104 billion. After the closing, shares of the beleaguered Intel company surged 7% as a result of the company's optimistic sales forecasts.
A higher yen darkened the outlook for Japanese exporters, causing Tokyo's Nikkei to drop 2.6% in Asia.
That somewhat undid its overnight drop of about 1% as the yen rose and less dovish remarks from Bank of Japan Governor Kazuo Ueda kept the door open for a year-end rate rise.
However, despite a 0.2% increase due to increases in Chinese equities, MSCI's broadest index of Asia-Pacific shares outside of Japan was still down 1.3% for the week.
Hong Kong's Hang Seng index increased 0.9% and China's blue chips climbed 0.5% after a private sector survey revealed that manufacturing activity resumed expanding in October.
As a result of claims that Iran was planning a retaliation assault on Israel from Iraqi territory in the coming days, oil prices continued their surge for a third day, rising over 2% to $74.15 a barrel.
Microsoft's stock dropped 6% and Facebook's owner Meta's stock plummeted 4% overnight on Wall Street as investors anticipated rising artificial intelligence expenses will reduce their earnings.
Ahead of the U.S. payroll statistics, investors are exercising caution. Although risks are skewed to the upside given the private sector survey's robust job growth and the lower-than-expected number of unemployment claims, economists predict that the U.S. economy gained 113,000 jobs in October.
But it's been difficult to understand the jobs figures because of hurricanes and strikes. In October, Goldman Sachs anticipates 95,000 new employment, while TD Securities only projects a 70,000 gain.
With data showing that U.S. consumption remained strong and inflation indicators indicating that price pressures were abating, a quarter-point rate decrease by the Fed is 94% priced in, barring any significant surprises.
(Sources: investing.com, reuters.com)
