Asian stocks retreated as investors braced for the latest U.S. jobs data, a key indicator that could influence the Federal Reserve’s next moves on interest rates. Benchmarks across major markets in Asia showed declines, with technology and export-oriented sectors hit hardest amid rising uncertainty. The cautious sentiment reflected concerns that resilient employment figures might sustain the Fed’s hawkish stance.
Japan’s Nikkei led losses, sliding further after a mixed week for equities globally. China’s CSI 300 also edged lower as investors continued to weigh Beijing’s uneven economic recovery. Meanwhile, the Hang Seng dipped, dragged down by tech giants, following similar pressure seen on Wall Street. In currency markets, the dollar strengthened, further pressuring regional assets, while bond yields held firm as traders awaited Friday’s U.S. jobs report.
This week’s market activity underscores the global reliance on U.S. economic data as a barometer for risk sentiment. With inflation still a concern, investors remain wary of any signals that could prolong higher interest rates, raising caution across both equity and debt markets.
