Asia Stocks Look Set to Advance Amid US Holiday: Markets Wrap

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Asian stocks looked set for modest gains as traders mulled US jobs data that supported optimism the Federal Reserve is nearing the end of its tightening cycle. US markets are shut Monday for the Labor Day holiday.

Futures contracts for Japanese and Australian equities edged higher after the S&P 500 Index eked out a gain Friday to notch its best week since June. China traders will look to see if equities there can build on last week’s advance. Treasury futures were little changed while the dollar was steady after gaining Friday against major peers.

Friday’s jobs report showed a labor market undergoing a controlled cooling, illustrated by solid hiring, slower earnings growth and more people returning to the workforce. The moderation gives the Fed room to pause rate increases this month while keeping options open for another hike later in the year.

In Asia, China’s trade and inflation data this week will likely signal that the economy’s recovery remains fragile, keeping pressure on policymakers to roll out more stimulus. Global demand for Chinese goods is still weak, as reflected by the depressed level of manufacturing gauges in the country’s main export markets. And an ongoing slump in the property market is curbing China’s import demand for building materials.

Elsewhere, key rate decisions for central banks are scheduled in Australia and Malaysia with rates expected to remain on hold.S&P 500 futures were little changed as of 7:04 a.m. Tokyo timeCurrenciesThe Japanese yen was little changed at 146.24 per dollarThe Australian dollar fell 0.1% to $0.6449The yield on 10-year Treasuries advanced seven basis points to 4.18% Friday.West Texas Intermediate crude rose 0.3% to $85.83 a barrel©2023 Bloomberg L.P.

 

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