Before US Jobs Data, Stocks Rise Whilst Dollar Declines. – Asia Market Wrap

A Wall Street stock boom continued into Asia, as more indicators of a cooling labour market bolstered expectations that the Fed will drop interest rates this month.

Asian stocks rose 0.7%, while mainland Chinese markets recovered after a drop on Thursday. Futures for the S&P 500 increased 0.2% as the index closed at a record high. Contracts also indicated a stronger opening for Europe. Japanese markets rose after Trump issued an executive order to establish his trade accord with Japan.

Treasuries held steady after Thursday’s gain, with the policy-sensitive US two-year yield near a one-year low. Money markets are virtually completely priced for a Fed cut, with at least two expected by the end of the year. The Dollar fell against its Group-of-10 counterparts, while gold rose.

In other news, Trump issued an executive order implementing his trade pact with Japan, which states that the US will apply a maximum 15% tariff on the majority of its imports. The agreement, which included a commitment that Japan would establish a $550 billion US investment fund, was struck in July but had not to be formalised as Washington and Tokyo negotiated its contents.

Oil fell for the third day in a row, on track for a weeklong decline ahead of an OPEC+ meeting that might see the group approve another supply increase.