Asian markets mostly advance, bucking US losses | Inquirer Business

Asian markets mostly advance, bucking US losses

/ 03:52 PM October 06, 2023

HONG KONG, China  -Hong Kong led the charge as most Asian markets posted gains Friday, shrugging off Wall Street losses ahead of key US jobs data due later in the day.

Analysts say signs of a robust American economy, such as strong labor market data this week, are bad news for equities as it gives the Federal Reserve more reason to keep monetary policy tight through to the end of the year and beyond.

US Treasury yields hit their highest levels since 2007 this week as investors fear high borrowing costs for businesses and consumers will eventually drag on the economy.


All eyes are on Friday’s monthly US employment data, which will give investors a good idea of whether recent signs of a softening in the labor market will continue.


READ: Moderate US job growth slowdown expected in September

“European markets look set to open modestly higher ahead of today’s US jobs report,” said Michael Hewson, chief market analyst at CMC Markets UK, “which, along with the September CPI report which is due next week could shift the odds significantly on whether we see another rate hike in November”.

“One other reason for the welcome retreat in yields yesterday may well have been the sharp decline in oil prices we’ve seen the past couple of days.”

On Thursday, the Dow Jones Industrial Average finished flat, while the S&P 500 and Nasdaq index ticked lower.

Hong Kong leads the charge

But Hong Kong was on the front foot Friday, with gains of about 1.5 percent by the afternoon, though Tokyo closed marginally lower.

Singapore, Seoul and Manila were also up, while mainland Chinese markets were closed for a week-long holiday.


Stephen Innes, managing partner at SPI Asset Management, said the Asian advances were “thanks partly to a drop in oil prices that benefits Asia’s colossal oil-importing nations”.

“This bounce came after Wall Street closed meekly with weekly unemployment claims holding historically low levels as good news remains paradoxically bad for US stocks,” he added.

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TAGS: Asian Markets, Hong Kong, labor market

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