Asian Shares Rise Ahead of U.S. Jobs Report, Dollar Weakens

Asian shares were mostly higher on Friday as investors eagerly awaited a report on the U.S. jobs market, with several major markets closed for holidays. Oil prices and U.S. futures were on the rise, while the Japanese yen strengthened against the U.S. dollar due to central bank intervention.

The Bank of Japan reportedly spent a significant amount to prevent the yen from slipping further against the dollar, highlighting the delicate balance in foreign exchange markets. A weaker yen can benefit Japanese companies with overseas revenues but can also lead to challenges in corporate planning and increased costs for imports.

In other parts of Asia, Hong Kong’s Hang Seng surged 1%, driven by news of Chinese leaders’ efforts to boost the economy, particularly in the technology sector. E-commerce giants Alibaba and JD.com saw gains in their stock prices.

Meanwhile, Australia’s S&P/ASX 200 and South Korea’s Kospi also saw modest gains, reflecting positive sentiment in the region. The S&P 500 and Nasdaq composite in the U.S. rose on Thursday, following the Federal Reserve’s announcement on interest rates.

Investors are eagerly awaiting the U.S. government’s report on job additions, with expectations of a slowdown in hiring. Despite high interest rates, the job market remains solid, as indicated by fewer workers applying for unemployment benefits.

Earnings reports from major companies like Qualcomm, Carvana, and MGM Resorts International drove market gains on Thursday. However, DoorDash and Peloton Interactive faced challenges, with DoorDash reporting a worse loss than expected and Peloton announcing job cuts and a change in leadership.

The U.S. economy is facing a delicate balance between avoiding a recession and managing inflation. Federal Reserve Chair Jerome Powell’s comments on inflation and interest rates have added to the uncertainty in the market.

In energy trading, U.S. benchmark crude oil and Brent crude saw slight gains in electronic trading. The overall market outlook remains cautious as investors navigate through economic updates and corporate earnings reports.