Mumbai, 5 Sep (Commoditiescontrol): Asian share markets attempted a rebound on Thursday following a steep sell-off, while a rally in U.S. Treasuries pressured the dollar and bolstered the yen amid rising concerns over the U.S. economy, which heightened expectations for a significant Federal Reserve rate cut.
Oil prices remained steady after recent declines driven by weak demand and supply concerns, while gold edged higher as investors sought safe-haven assets.
In a week packed with economic data, investors are closely analyzing reports to gauge the health of the U.S. economy and labor market. Weak manufacturing data earlier in the week, coupled with mixed labor statistics on Wednesday, have kept markets on edge.
Japan's Nikkei fell 0.5%, hitting a three-week low, while tech-heavy markets in Taiwan and South Korea both rose by 1%, recovering from Wednesday's losses. This lifted the MSCI's broadest index of Asia-Pacific shares outside Japan by 0.6%, following a nearly 3% decline over a three-day losing streak.
Investor focus on Thursday is on U.S. services industry data and jobless claims figures. However, the main event for the week remains Friday’s eagerly awaited August nonfarm payrolls report, which is expected to provide crucial insights into the economic outlook and the Fed's potential rate cuts.
Market expectations for a 50-basis-point rate cut at the Fed's September 17-18 meeting have increased to 44%, up from 38% the previous day, according to the CME FedWatch tool. Traders are now pricing in 110 basis points of easing for the remainder of the year across the Fed’s three remaining meetings.
The shift in market sentiment followed data on Wednesday showing U.S. job openings fell to their lowest level in three and a half years in July, signaling a potential slowdown in the labor market. San Francisco Fed President Mary Daly emphasized the need for rate cuts to maintain labor market stability but indicated that future decisions would depend on upcoming economic data.
In currency markets, the dollar remained under pressure as investors sought refuge in safer assets. The Japanese yen was a key beneficiary, strengthening nearly 2% for the week and last trading at 143.56 per dollar. The Swiss franc, another traditional safe-haven currency, held steady at 0.8461 per dollar.
U.S. Treasury yields were stable in early Asian trading on Thursday after a sharp drop in the previous session. The yield on the two-year note was at 3.775%, near its lowest level since May 2023, while the benchmark 10-year note yield stood at 3.767%.
In the commodities market, Brent crude futures rose 0.45% to $73.03 per barrel, recovering from a 1.42% drop in the prior session. U.S. West Texas Intermediate (WTI) crude futures gained 0.52%, trading at $69.56 after a 1.62% decline on Wednesday.
(By Commoditiescontrol Bureau: 09820130172)
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