Asian stocks fell Friday and a dollar gauge hovered near a record high ahead of key US jobs data that could stir expectations for another sharp Federal Reserve interest-rate hike. A drop in Japan sapped the region-wide equity index, while US futures wavered after Wall Street snapped a four-day losing streak to eke out modest gains.
The jobs update Friday is expected to show healthy payrolls growth and follows a stronger-than-expected US manufacturing report. Traders increasingly anticipate another large 75 basis points Fed rate rise to cool inflation.
Also read| Asian stocks fall on hawkish US Fed outlook; oil trims drop, dollar gauge steady
Global bonds as a whole slumped into their first bear market in a generation: the Bloomberg Global Aggregate Total Return Index of government and investment-grade corporate bonds is down more than 20% from a 2021 peak.
Oil bounced above $87 a barrel, undoing some of the losses sparked by China’s move to lock down the metropolis of Chengdu to curb Covid. The latter step amplified worries about the commodity demand outlook.
Also read| US stocks: S&P 500 snaps four-session losing streak with payrolls on deck
Here are some key events to watch this week:
ECB Governing Council members due to speak at event Tuesday through Sept. 2US nonfarm payrolls, FridayUK leadership ballot closes Friday. Winner announced Sept. 5
Some of the main moves in markets:
StocksS&P 500 futures fell 0.1% as of 10:13 a.m. in Tokyo. The S&P 500 rose 0.3%Nasdaq 100 futures were steady. The Nasdaq 100 was little changedJapan’s Topix index dropped 0.6%Australia’s S&P/ASX 200 index fell 0.1%South Korea’s Kospi index added 0.4%
CurrenciesThe Bloomberg Dollar Spot Index fell 0.1%The euro was at $0.9955, up 0.1%The Japanese yen was at 140.04 per dollar, up 0.1%The offshore yuan was at 6.9140 per dollar
BondsThe yield on 10-year Treasuries rose one basis point to 3.26%Australia’s 10-year bond yield was at 3.68%
CommoditiesWest Texas Intermediate crude rose 1.3% to $87.73 a barrelGold was at $1,697.58 an ounce
