Asian Stocks Mixed Ahead of US Jobs Report
Asian stocks were mixed on Friday, December 5th, as investors awaited the release of the US jobs report later in the day. The report would provide insights into the health of the American labor market and potentially influence the Federal Reserve's monetary policy decisions.
Japan's Nikkei 225 index declined by 0.9%, while Chinese stocks rallied. The Hang Seng index in Hong Kong gained 1.4%, and the Shanghai Composite index rose by 1.2%. South Korea's Kospi index, however, fell by 0.6%.
Analysts noted that investors were cautious ahead of the US jobs report, as well as President-elect Donald Trump's potential moves on tariffs and trade. Additionally, political turmoil in South Korea, where President Yoon Suk Yeol faced calls for resignation and impeachment, also contributed to market volatility.
Meanwhile, Bitcoin briefly surpassed $103,000 on Thursday before pulling back. The cryptocurrency's surge followed President-elect Trump's nomination of Paul Atkins, a crypto advocate, to head the Securities and Exchange Commission.
In the US, the S&P 500 index slipped by 0.2% on Thursday, while the Dow Jones Industrial Average fell by 0.6%. The Nasdaq composite index also declined by 0.2%. Despite the slight decline, the S&P 500 was still on track for one of its best years of the millennium.
Solid consumer spending has been a key factor in preventing a recession in the US, despite the Federal Reserve's interest rate hikes to combat inflation. However, shoppers are now facing high prices and a slowing job market.
Expectations are high that the Fed will cut its main interest rate again when it meets before Christmas. The Fed began easing its interest rate from a two-decade high in September to support the job market.