Asian stocks falter, dollar rises ahead of US payrolls data

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Disappointing earnings results from Google, Apple and Amazon weigh on markets

The trading gallery of the RHB Investment Bank Bhd. headquarters in Kuala Lumpur, Malaysia on November 21 2022. Picture: Samsul Said/Bloomberg

MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.5% on Friday, dragged down by a 0.9% slump in Chinese bluechips and a 1.2% tumble in Hong Kong’s Hang Seng index.Disappointment over earnings results from Google, Apple and Amazon tempered sentiment.Tech shares took a beating in Thursday's after-hours trading, with shares of Apple, Amazon and Google parent Alphabet all tumbling.

Investors are also watching the fallout from this week’s plunge in shares of India’s Adani group, after market losses amounted to more than $100bn in the wake of a US short-seller’s report. “The wash-up is that the BoE meeting was dovish, and the ECB is now firmly open-minded and data-dependent, and the Fed chose not to fight the market and the market feels validated by that,” said Chris Weston, head of research at Pepperstone.

Analysts expect 185,000 jobs were added last month, the lowest since January 2021, unemployment edged up to 3.6%, and hourly wage inflation to stay flat at 0.3% on a monthly basis, suggesting the strong labour market might have started to ease up. Sterling fell to $1.2206 on Friday, the lowest in more than two weeks, after tumbling 1.2% the previous session.

 

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