Asian stocks strengthened while investors wait for data on jobs in the US, reports Reuters

© Reuters. FILE PHOTO: Monitors Displaying Stock Exchange Index and Japanese Yen Exchange Rate Against US Dollar See After New Year’s Celebration of 2022 Tokyo Stock Exchange (TSE) Trading, Amid Crown Virus (COVI)

Kanupriya Kapoor and Stella Qiu

SINGAPORE (Reuters) – Asian stocks rose largely on Friday, breaking two days of losses after expectations rose that U.S. job data to be released later in the day heightened the need for a faster rise in U.S. interest rates.

MSCI’s broadest Asia-Pacific stock index outside of Japan rose 0.7%, driven by growth in Australia where the local benchmark index rose 1.3%, led by bank stocks.

however, it slipped 0.1%.

Shares of China and Hong Kong have risen in hopes that Beijing will introduce more support measures to prioritize economic stability. Shares in Hong Kong rose 1.2% and Chinese blue chips 0.2%.

Hong Kong’s land-based stock index jumped 4.6% on media reports that Chinese policymakers plan to rule out debt arising from acquiring assets in distress when assessing debt ratio compliance.

Investors are likely to adjust to “attractive, cheaper” Asian stocks beginning the year, said Jim McCafferty, joint head of APAC stock research in Nomura.

“Given that rates will rise, from the point of view of global risk diversification, investors are likely to transfer their money from American markets to Asian markets, especially China, because it is increasingly independent of what the United States is doing,” he said.

Futures pointed to small initial gains in Europe and the United States. The pan-region rose 0.23% and e-mini stock futures rose 0.2%.

U.S. Treasury yields stalled in Asian hours on Friday after rising sharply this week after the Federal Reserve’s December record showed a tight job market and relentless inflation could force the US Federal Reserve to raise rates more aggressively this year.

The yield on the benchmark was last at 1.7231% and reached 1.7530% overnight, the highest since April 2021 and has risen sharply compared to the 2021 close of 1.5118%.

The two-year yield, which is closely linked to inflation expectations, was at 0.8741% slightly above the nighttime high of 0.886%.

Kerry Craig, global market strategist at JPMorgan (NYSE 🙂 Asset Management, said investors are waiting for U.S. employment data to be submitted later Friday and inflation data next week to see if it will intensify or undermine the case. faster rate increases.

Non-agricultural payrolls are likely to have risen 400,000 jobs last month after rising 210,000 in November, according to a Reuters economist survey.

The outlook for a strong employment report was boosted by the ADP National Employment Report on Wednesday, which shows private payrolls increased by 807,000 jobs last month.

In the currency markets, higher yields meant that the dollar, which measures the dollar against six similar banks, rose 0.55% this week.

On Friday, the dollar retained its gains against most major currencies, while up 0.1% against the yen to 115.89 against the dollar, from a five-year high of 116.34 on Tuesday.

Oil prices have risen, which some analysts have linked to news that Russian paratroopers have managed to quell unrest in Kazakhstan, although OPEC + production in the country has remained largely unchanged.

futures rose 0.9% to $ 82.71 a barrel and rose 0.96% to $ 80.2.

was $ 1,790.01 an ounce after hitting a two-week low of $ 1,788.25 on Thursday, as U.S. Treasury yield growth jeopardized demand for interest-free metal.

it fell 3.4% to about $ 41,600, the lowest level since late September.

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