April 07, 2023
The European and US financial as well as commodities markets were closed owing to the observance of the Good Friday holiday, while Asian markets edged up in holiday-thinned trade with all eyes on the release of US jobs data later in the day.
Markets did not operate in Australia, Hong Kong, India, Indonesia, New Zealand, the Philippines, and Singapore, while Nasdaq and US bond markets, as well as the New York Stock Exchange, also followed the suit.
On the other hand, China stocks rose to a one-month high on Friday, buoyed by signs of strong capital inflows, and hopes of improving ties between China and Europe.
The closely watched US job report comes after a series of releases this week pointed to a softening of the labour market, suggesting Federal Reserve rate hikes over the past year are kicking in.
Analysts said a strong reading could deal a blow to markets as it would put further pressure on the US central bank to lift borrowing costs more.
However, a lower-than-expected figure would allow officials to take their foot off the pedal, though it could also add to worries that the world´s top economy was heading for a recession.
After a positive lead from Wall Street in muted trade, Asia's few open markets advanced.
Shanghai, Tokyo and Seoul advanced. New York, London and Frankfurt were closed for the Good Friday holiday.
Fresh US government unemployment data on Thursday showed there were 228,000 new applications for unemployment aid last week, above analyst expectations.
That followed Wednesday´s news that services sector activity grew less than forecast last month, while a separate report pointed to private employers slowing their hiring pace in March.
"All the employment data leading up to the nonfarm payroll report has confirmed a clear trend that a labour market slowdown has begun," said OANDA´s Edward Moya.
Expectations for Fed rates have lowered over the past month after banking sector turmoil -- largely blamed on the sharp hikes -- sparked fears of another financial crisis.
While the upheaval has calmed for now, traders remain on edge for any more stresses.
However, a number of Fed officials have said the bank could resume lifting as it battles to bring inflation down.
Among them is St Louis Fed boss James Bullard, who said Thursday: "Financial stress seems to be abated, at least for now.
"And so it's a good moment to continue to fight inflation and try to get on that disinflationary path."