October 05, 2023 (MLN): Asian markets posted gains in early trade Friday, shrugging off Wall Street losses ahead of key US jobs data, as APP reported.
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 that 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.
"Stock investors are not playing" with the drop in 10-year US yields, and "worries about a hot Non-Farm Payroll are upping the uncertainty index", Stephen Innes of SPI Asset Management said.
On Thursday, the Dow Jones Industrial Average finished flat, while the S&P 500 and Nasdaq index ticked lower.
But Hong Kong started Friday on the front foot, with early gains of just over 1.5%, while Tokyo crept higher.
Singapore, Seoul, and Mumbai were also up, while mainland Chinese markets were closed for a week-long holiday.
"If there are any signs of the labor market cracking then that would obviously be positive and maybe could send stocks a little bit higher," Peter Cardillo from Spartan Capital told AFP.
"The markets sell-off which saw government bond prices fall and yields rise has taken center stage this week, and investors continue to watch the 10-year Treasury yield like a hawk," said AJ Bell investment director Russ Mould.
