On Friday morning (21 November, 9:40 AM, GMT+7, Bangkok time), major indices in Asia Pacific tracked losses on Wall Street, following the release of a stronger-than-expected non-farm payrolls figure. Additionally, U.S. technology stocks retreated, with investor optimism for a potential Federal Reserve rate cut in December fading.
Market sentiment took an additional hit from delayed U.S. employment figures. The data showed stronger-than-anticipated job gains for September but also highlighted ongoing inconsistencies in the labor market, with the unemployment rate unexpectedly soft. Following the release, expectations for a Fed rate cut in December remained muted. According to the CME FedWatch Tool, traders were pricing in only about a 39% probability of a quarter-point reduction next month.
The U.S. unemployment rate climbed to 4.4%, reaching a level not seen since October 2021. While employers added 119,000 jobs last month—far above economists’ estimates of 50,000 in a Reuters poll—August data were revised downward to reflect a loss of 4,000 positions, the second decline recorded this year. The higher jobless rate, up from 4.3% in August, was attributed to an expansion in the labor force as more Americans sought employment opportunities.
In Japan, the nation’s core inflation rate was recorded at 3% in October, reaching its highest level since July and matching market forecasts, reinforcing expectations for potential rate hikes by the Bank of Japan.
Headline inflation also rose to 3%, surpassing the BOJ’s 2% target for the 43rd consecutive month. Moreover, the “core-core” inflation gauge, which omits both fresh food and energy prices, inched up to 3.1% from 3% the previous month.
Japan’s NIKKEI slumped by 2.26% to 48,699.10. South Korea’s KOSPI plummeted by 3.61% to 3,860.44, and Australia’s ASX 200 dropped by 1.44% to 8,429.70.
As for stocks in China, Shanghai’s SSEC declined by 1.58% to 3,869.13. Shenzhen’s SZI lost 2.34% to 12,676.72, and Hong Kong’s HSI fell by 2.03% to 25,311.47.
The U.S. stock markets edged down on Thursday as the Dow Jones Industrial Average (DJIA) decreased by 0.84% to 45,752.26. NASDAQ contracted by 2.16% to 22,078.04, and S&P 500 diminished by 1.56% to 6,538.76. VIX surged by 11.67% to 26.42.
As for commodities, oil prices settled lower on Thursday after the Trump administration pressed Ukraine to consider a peace deal with Russia that includes territorial concessions and military cutbacks—terms previously rejected by President Volodymyr Zelenskiy. Earlier gains, driven by a larger-than-expected decline in U.S. crude inventories, reversed as Zelenskiy stated he would review the proposal and consult with the U.S. regarding the plan. Brent crude futures closed at $63.38 per barrel, slipping 13 cents, or 0.2%, while U.S. West Texas Intermediate crude ended the session at $59.14 a barrel, down 30 cents, or 0.5%.
This morning, Brent crude futures dropped 73 cents, or 1.15%, to $62.65 per barrel, while the WTI remained unchanged at $59.14 per barrel.
Meanwhile, gold futures rose by 0.29% to $4,071.80 per Troy ounce.
