Hong Kong Stocks Rise Ahead of Asia as the Oil Rally Pauses – Asia Market Wrap

Hong Kong stocks led Asian markets higher ahead of US jobs data, which will determine the route forward for interest rates. A surge in oil prices came to an end as the commodity experienced its largest one-day increase in nearly a year.

Equities in Japan and South Korea rose, while stocks in Australia fell. Markets in mainland China were closed for a vacation. A barometer of Chinese shares in Hong Kong rose as traders assessed the sustainability of the recent surge and waited for specifics on fiscal stimulus and holiday spending. Futures contracts for the S&P 500 and Nasdaq 100 increased.

The Dollar index fell slightly, but it is still on track for its greatest weekly gain in over six months after traders reduced their expectations for dramatic US rate cuts. Treasuries were unchanged in Asian trading after falling on Thursday, pushing rates to levels not seen since September.

Investors are fearful that if Israel strikes major Iranian assets, the Islamic Republic will retaliate and expand the crisis, involving additional nations and potentially interrupting global energy exports. Israel claimed it targeted more than a dozen Hezbollah locations in Beirut on Thursday.

The Yen rose, and the Pound steadied after plunging strongly versus the Dollar the day before on signals that the BoE may slash interest rates more forcefully. Japan’s PM Ishiba directed his cabinet on Friday to prepare a package of economic measures in support of inflation-stricken voters ahead of a general election.