Asian stock markets exhibited a mixed performance on Friday, following a decline on Wall Street from its recent record highs as investors geared up for a crucial U.S. jobs report expected later in the day.
Futures for the U.S. market indicated lower prices, while oil prices remained relatively stable.
The main focus for investors this week centers on the government jobs report that will provide insights into the labor market, indicating how many individuals were hired or laid off in the previous month. A report released on Thursday highlighted an uptick in applications for unemployment benefits, although overall levels are still considered historically robust.
In Japan, the Nikkei 225 index saw a decrease of 0.9%, settling at 39,042.59. The U.S. dollar also dropped against the yen, trading at 149.91 yen compared to a previous 150.10 yen.
Conversely, Chinese stocks experienced gains, with the Hang Seng index in Hong Kong rising by 1.4% to reach 19,831.37 and the Shanghai Composite index climbing 1.2% to settle at 3,410.36. Market observers are closely monitoring an annual economic policy meeting set for next week.
Analysts suggest that there may be a cautious approach from policymakers as they anticipate implications from the potential trade and tariff decisions under President-elect Donald Trump.
In South Korea, the Kospi index decreased by 0.6% to 2,422.95. The country’s ruling party leader expressed backing for the suspension of President Yoon Suk Yeol’s constitutional powers after his recent imposition and subsequent lifting of martial law. Yoon is facing significant backlash, with calls for his resignation and possible impeachment following his controversial decisions.
Massive protests have erupted, with thousands of individuals taking to the streets, and a significant portion of the Korean Metal Workers’ Union commencing partial strikes to voice their dissent against Yoon’s administration. The union has warned of escalating strikes starting on Wednesday unless Yoon resigns.
In other parts of Asia, Australia’s S&P/ASX 200 declined by 0.6%, landing at 8,424.00.
In the cryptocurrency realm, Bitcoin briefly surged past $103,000 on Thursday before retracting, following a landmark crossing of the $100,000 mark for the first time. This surge followed President-elect Trump’s nomination of Paul Atkins, regarded as a supporter of cryptocurrency, to head the Securities and Exchange Commission.
As of early Friday, Bitcoin was trading at approximately 97,941.86, according to CoinDesk.
On Thursday, the S&P 500 dipped by 0.2% to close at 6,075.11, yet it remains on track for one of its most successful years in recent decades. The Dow Jones Industrial Average fell by 0.6% to 44,765.71, while the Nasdaq composite slightly decreased by 0.2%, ending at 19,700.26 after reaching a record the previous day.
Strong consumer spending has helped keep the U.S. economy from descending into a downturn, despite the Federal Reserve’s interest rate hikes aimed at curbing inflation. However, consumers are facing persistent high prices and a cooling job market.
Many anticipate that the Fed will reduce its main interest rate once again in its December meeting, following a retreat from its two-decade peak in September, aimed at bolstering support for the job market.
In other financial updates on Friday morning, benchmark U.S. crude oil prices decreased by 1 cent to $68.29 per barrel, while Brent crude, which serves as the international benchmark, saw a decline of 7 cents, settling at $72.02 a barrel.
The euro experienced a slight decrease, trading at $1.0576, down from $1.05895. This change followed an announcement from French President Emmanuel Macron, who declared his intention to remain in office for the remainder of his term and to appoint a new prime minister shortly. This comes in the wake of a no-confidence vote prompted by budget disagreements, which led to the resignation of Prime Minister Michel Barnier and his Cabinet.
