Markets Steady Ahead of Jobs Data as Tariff Tensions Simmer – Asia Market Wrap
Stocks traded in a tight range as investors held off from adding more bets to their portfolios ahead of June payrolls data from the US Thursday. Japanese shares dropped on President Donald Trump’s latest tariff threat.
Contracts for the S&P 500 edged up 0.3% while an index of Asian shares was flat – paring most of its earlier losses. The Nikkei-225 Stock Average declined 0.2% after Trump threatened to hike tariffs on Japan and deepened his criticism of the country for not accepting US rice exports. A gauge of the dollar edged back toward a three-year low set Tuesday.
Investors are closely monitoring the economic data and trade tensions after Trump said he won’t delay the July 9 deadline for imposing higher levies on trading partners. Stock markets – which once swung wildly on trade headlines – appear to see little risk, as equity indexes sit near all-time highs. The calm is being fueled by expectations Trump will extend his tariff deadline based on his pattern of threatening first and backing down later.
The June employment report, due on Thursday given the July 4 holiday on Friday, is forecast to show growth in the workforce easing to about 110,000 new jobs from 139,000 the prior month, according to economists. The unemployment rate is seen nudging up to 4.3%.
For a Federal Reserve awaiting more clarity on the potential inflationary impact from tariffs, any pronounced deterioration in the labor market would likely lead to more pressure on officials to lower interest rates.
