Asian Shares Mixed as Traders Look ahead U.S. Non-Farm Payrolls

Stocks in Asia were mixed on Friday as investors awaited the release of the critical non-farm payrolls report and the effects of rising bond yields following the U.S. rating downgrade.

As of 9.35 A.M. Bangkok time, Japan’s Nikkei 225 was down 0.24%. South Korea’s Kospi dropped 0.22%.

The S&P/ASX 200 in Australia lost 0.10%. 

Hong Kong’s Hang Seng index, meanwhile, added 1.26%. The Shanghai Composite in mainland China also rose 0.42%. 

U.S. 30-year bond yields jumped 14 basis points overnight, as reported by IG market analyst Tony Sycamore, to 4.30%, inching closer to its all-time high of 4.42% set in October 2022.

“The move higher in long end yields is being driven by lumpy bond issuance, resilient data, and Fitch’s downgrade earlier this week,” Sycamore added.

The Dow Jones Industrial Average fell 0.19% and the S&P 500 dropped 0.25% overnight in the U.S., as traders considered the latest economic data and earnings alongside rising Treasury yields. The Nasdaq Composite Index dipped by 0.1%.

New claims for jobless benefits in the U.S. increased marginally last week, although layoffs fell to an 11-month low in July due to the tight labor market.

CMC Markets analyst Tina Teng suggested that the U.S. stock market could be entering a correction phase following a multi-month surge. According to Teng, another factor that can affect prices is the upcoming non-farm payroll data, which may reveal the Federal Reserve’s policy direction.