Global Markets:
- Asian Stock Markets : Nikkei down 0.63%, Shanghai Composite down 0.55%, Hang Seng down 0.08% ASX up 0.4%
- Commodities : Gold at $2550.35 (0.39%), Silver at $29.2 (0.31%), Brent Oil at $72.90 (0.39%), WTI Oil at $69.3 (0.38%)
- Rates : US 10-year yield at 3.704, UK 10-year yield at 3.916, Germany 10-year yield at 2.2183
News & Data:
- (CAD) Labor Productivity q/q -0.2% vs -0.1% expected
- (USD) ADP Non-Farm Employment Change 99K vs 144K expected
- (USD) Unemployment Claims 227K vs 231K expected
Markets Update:
Asia-Pacific markets largely declined on Friday as investors anticipated a key U.S. jobs report and absorbed Japan’s household spending data. Japan’s household spending for July grew by only 0.1% year-on-year, significantly below the 1.2% increase expected by economists. This was a turnaround from June’s 1.4% decline. According to Japan’s statistics bureau, average household spending for July 2024 was 290,931 yen ($2,031.35), a 3.3% rise in nominal terms. Meanwhile, household income surged to 694,483 yen, up 8.9% nominally and 5.5% in real terms.
The weaker spending data could limit the Bank of Japan’s ability to raise interest rates, though strong wage growth figures from Thursday might provide some balance. Japan’s Nikkei 225 fell by 0.6%, while the Topix dropped by 0.97%. Seven & i Holdings, the parent company of 7-Eleven, lost 1.73% after rejecting a takeover offer from Alimentation Couche-Tard.
South Korea’s Kospi was down 0.87%, and the Kosdaq dropped 2.31%. Conversely, Australia’s S&P/ASX 200 rose by 0.4%.
In Hong Kong, markets remained closed due to Super Typhoon Yagi. The Hong Kong Observatory expected to lower the storm signal by 12:40 p.m., though trading would stay halted for the day if downgraded after noon.
Mainland China’s CSI 300 slipped 0.27%. In the U.S., all major indexes dropped, with the S&P 500 losing 0.3% and the Dow Jones falling 0.54%. However, the Nasdaq Composite gained 0.25%.
Upcoming Events:
- 12:30 PM GMT – CAD Employment Change
- 12:30 PM GMT – CAD Unemployment Rate
- 12:30 PM GMT – USD Average Hourly Earnings m/m
- 12:30 PM GMT – USD Non-Farm Employment Change
- 12:30 PM GMT – USD Unemployment Rate
