AFP, Hong Kong :
Asian markets fluctuated Friday as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut.
With uncertainty over the China-US trade row put aside for now, this week has been dominated by speculation about the US central bank’s plans to address a weakening economic outlook, both at home and globally.
The jobs report is a closely watched gauge of the state of the world’s biggest economy and a below-forecast reading would ramp up hopes the Fed will announce a 50-basis-point reduction.
“Today’s US payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points,” said Michael Hewson, chief market analyst at CMC Markets UK.
And Pepperstone Group head of research Chris Weston added that “a number in line with consensus probably delivers that July cut and I think that’s what the market wants to see”.
“If we get a really strong number, I think risk could really come off the table,” he told Bloomberg News.
The clamour for a Fed rate cut comes as central banks around the world take a more accommodative position to offset economic weakness blamed on trade uncertainty, particularly the China-US standoff.
Equities swung back and forth ahead of the jobs release, with most markets bouncing back from morning losses.
Tokyo and Shanghai each closed 0.2 percent higher while Hong Kong was flat in the afternoon.
Taipei and Seoul both finished 0.1 percent higher while Sydney, Wellington, Manila and Bangkok were also in positive territory. But Singapore, Mumbai and Jakarta edged down.
In early trade London and Paris dipped 0.2 percent while Frankfurt was off 0.1 percent.
Asian markets fluctuated Friday as investors steeled themselves for the release of a crucial US jobs report that could have a major bearing on the size of an expected Federal Reserve interest rate cut.
With uncertainty over the China-US trade row put aside for now, this week has been dominated by speculation about the US central bank’s plans to address a weakening economic outlook, both at home and globally.
The jobs report is a closely watched gauge of the state of the world’s biggest economy and a below-forecast reading would ramp up hopes the Fed will announce a 50-basis-point reduction.
“Today’s US payrolls report has the potential to upset the apple cart when it comes to whether or not we can expect to see a Fed rate cut later this month, and if we do whether it will be 25 or 50 basis points,” said Michael Hewson, chief market analyst at CMC Markets UK.
And Pepperstone Group head of research Chris Weston added that “a number in line with consensus probably delivers that July cut and I think that’s what the market wants to see”.
“If we get a really strong number, I think risk could really come off the table,” he told Bloomberg News.
The clamour for a Fed rate cut comes as central banks around the world take a more accommodative position to offset economic weakness blamed on trade uncertainty, particularly the China-US standoff.
Equities swung back and forth ahead of the jobs release, with most markets bouncing back from morning losses.
Tokyo and Shanghai each closed 0.2 percent higher while Hong Kong was flat in the afternoon.
Taipei and Seoul both finished 0.1 percent higher while Sydney, Wellington, Manila and Bangkok were also in positive territory. But Singapore, Mumbai and Jakarta edged down.
In early trade London and Paris dipped 0.2 percent while Frankfurt was off 0.1 percent.
