China Yields Increase While Stocks Drop Ahead of US Jobs – Asia Market Wrap

Asian shares fell ahead of US jobs data, which will help influence interest rate expectations.

MSCI’s Asia benchmark fell for the third consecutive day, as most market equities fell. The S&P 500 contracts changed slightly after the US stock market halted Thursday to celebrate a national day of mourning for former President Jimmy Carter.

Treasuries were flat in Asian trading, following a selloff earlier this week that brought 30-year rates to their highest level since 2023. Chinese yields climbed after the PBOC said that it would temporarily cease its purchases of government bonds, a surprising move after the benchmark yield fell to a new low. The offshore Yuan edged up versus the Dollar.

The Dollar index rose modestly, continuing a three-day rally. The Yen fell 0.1% against the Dollar. Traders are watching for signs that Japan would support the Yen, with the US employment report looming as a potential catalyst for dramatic currency movements.