MANILA (Philippines): Asian shares rose on Friday following record highs on Wall Street, as investors positioned themselves ahead of an upcoming US jobs report that could pave the way for interest rate cuts.
In Tokyo, the Nikkei 225 climbed 0.9 per cent to 42,945.16 after data showed Japan’s labor cash earnings grew 4.1 per cent year-on-year in July, up from 3.1 per cent in June. Household spending also rose 1.4 per cent in July from the same month last year, marking the third consecutive month of growth.
Meanwhile, President Donald Trump signed an executive order on Thursday implementing the US-Japan trade deal agreed in July, which includes lower tariffs on Japanese car imports.
In China, Hong Kong’s Hang Seng Index gained 0.5 per cent to 25,194.85, while the Shanghai Composite added 0.4 per cent to 3,778.95. South Korea’s Kospi edged up less than 0.1 per cent to 3,203.13, and Australia’s S&P/ASX 200 rose 0.3 per cent to 8,855.20. India’s BSE Sensex advanced 0.2 per cent, and Taiwan’s Taiex jumped over 1 per cent. US futures also moved higher, while oil prices edged down.
On Wall Street Thursday, the S&P 500 gained 0.8 per cent, surpassing its previous all-time high. The Dow Jones Industrial Average rose 350 points, or 0.8 per cent, and the Nasdaq Composite added 1 per cent.
The market rally was supported by easing pressure in the bond market, as Treasury yields fell after reports indicated weaker-than-expected US job growth. One report showed nonfarm payrolls nearly halved in August compared with July, while another highlighted a rise in unemployment benefit claims, suggesting increased layoffs.
Despite the slower job growth, the data did not signal a recession. A third report revealed stronger-than-expected growth in business activity across information and other service industries.
A cooling labor market could encourage the Federal Reserve to cut its key interest rate for the first time this year at its next meeting, potentially stimulating economic growth and employment—but also carrying inflation risks. So far, the Fed has kept rates steady, prioritizing inflation concerns driven by tariffs over labor market trends.
The US Labor Department is set to release a more comprehensive August jobs report on Friday, which will likely influence the Fed’s next move. Ahead of the release, the 10-year Treasury yield fell to 4.16 per cent from 4.22 per cent late Wednesday.
In commodities, benchmark US crude fell 13 cents to USD 63.35 per barrel, while Brent crude slipped 11 cents to USD 66.88 per barrel. The US dollar eased to 148.13 Japanese yen from 148.05, while the euro rose to USD 1.1672 from USD 1.1654.
