1 hr ago
Asian Shares Fall Ahead of US Jobs Data
Asian stock markets fell while investors waited for an important US jobs report.
The report could influence what the Federal Reserve does with interest rates.
US government bond yields rose sharply before easing back.
High bond yields can make investors more cautious about buying stocks.
Investors also worried about financial problems in France, which weakened the euro.
The US dollar strengthened against several major currencies.
Japan’s yen weakened even as inflation in Tokyo increased.
Oil prices remained high because of concerns about military activity and fuel supplies in the Middle East.
Chinese markets were closed for a public holiday.
MSCI’s broadest Asia-Pacific index outside Japan fell 0.5% and was headed for a 1.7% weekly decline.
The US 10-year Treasury yield reached 5.3445%, its highest level since 2002, before retreating toward 5.25%.
Investors awaited US nonfarm payrolls, with forecasts for 90,000 new jobs in September and a 4.1% employment rate.
Markets priced a 25% chance of a Federal Reserve rate hike in October, down from 69% a week earlier, while a December hike remained fully priced in.
Oil prices stayed elevated as the United States reportedly sent more forces to the Middle East and China suspended oil-product exports.
- Who
- Investors in Asian, European and US financial markets, along with the Federal Reserve and other central banks.
- What
- Asian shares fell amid volatile bond and currency markets ahead of US employment data.
- Where
- Financial markets across Asia, Europe and the United States; oil markets were also affected by developments in the Middle East and China.
- When
- Friday, with the US nonfarm payrolls report due later that day.
- Why
- Investors were reacting to sharp movements in Treasury yields, concerns about French finances, expectations for US interest rates and elevated geopolitical and fuel-supply risks.
Key facts
- Asia-Pacific shares
- MSCI’s broadest index outside Japan fell 0.5% and was on track for a 1.7% weekly decline.
- US 10-year Treasury yield
- Reached 5.3445%, the highest level since 2002, before easing toward 5.25%.
- US jobs forecast
- Economists expected 90,000 jobs to be added in September, with the employment rate at 4.1%.
- October rate-hike probability
- Markets priced a 25% chance of a Federal Reserve hike, down from 69% a week earlier.
- French-German bond spread
- Rose above 140 basis points, its widest level since 2012.
- US dollar index
- Stood at 102.09 after rising 0.6% overnight and reaching its highest level since April 2025.
- Oil prices
- West Texas Intermediate crude held near $92.84 a barrel, while Brent remained above $102.
Quotes
Chris Weston
Head of research at Pepperstone
“Risk assets have so far absorbed the rise in US real yields, and long-end nominal Treasury yields remarkably well. However, a sustained increase in term premium could be far more problematic.”
CNBC TV 18
“With the Fed now myopically focused on inflation and price pressures, a hot wages print could prove particularly influential for US rates, Treasuries and the USD.”
CNBC TV 18
Sources
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