Gold Drops as Stocks Fall Before US Jobs Data – Asia Market Wrap
Stocks fell and the Dollar remained at two-month lows as investors reduced risk ahead of critical US economic data that could indicate where interest rates are heading.
Asian stocks sank 1.5%, and futures pointed to a third day of losses for the S&P 500 as traders remained cautious ahead of Tuesday’s November US jobs report, which is likely to reveal a slowing labour market. Chinese stocks fell to crucial negative technical levels, fuelled by fading technological advantages and increasing fears about economic growth. European stocks were likewise poised for a dismal start.
Bitcoin recovered much of its previous losses to trade at $86,000. Oil remained near its lowest level since 2021 as traders assessed the prospects for a truce in Ukraine, while gold fell after five days of advances.
The swings highlighted a growing feeling of trepidation in the last weeks of a year marked by April’s market lows, when century-high US tariffs spooked investors, followed by a strong AI-driven comeback and Fed easing. With a slew of crucial economic data releases due this week, investors will gain a better understanding of whether that narrative can endure.
Currencies were also under focus in Asia, with the Yen rising against the Dollar to trade below 155 ahead of the BoJ’s widely expected decision to raise its benchmark rate to the highest level in three decades on Friday. The Indian rupee has fallen to record lows, and an increasing number of policymakers are advocating for a stronger Yuan to help rebalance China’s economy.
