Asian shares fall after wild swings in bonds, FX; US jobs data looms
SPY•Asian shares fell as investors awaited US jobs data, with Japan’s Nikkei down 1.1% and Hong Kong’s Hang Seng down 2.6%. Treasury yields eased from a 24-year high, while oil remained elevated above $92 a barrel for US crude.
1. Markets await jobs data
Asian shares fell on Friday as investors navigated swings in bond and currency markets ahead of US nonfarm payrolls data. Forecasts centered on a gain of 90,000 jobs in September, with the unemployment rate expected to hold at 4.1%. A hot reading could revive bets on a second Federal Reserve rate increase this month, which were priced at 25%.
2. Stocks and bonds move
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.3% and was on track for a 1.5% weekly decline. Japan’s Nikkei dropped 1.1%, while Hong Kong’s Hang Seng slid 2.6%. The 10-year Treasury yield rose 2 basis points to 5.2495%, after easing overnight from a 24-year high of 5.3445%.
3. Currency and oil shifts
Fiscal concerns in France pushed the spread between French and German sovereign bond yields above 140 basis points, its widest since 2012, and pressured the euro. The dollar index stood at 102 after rising 0.6% overnight. US West Texas Intermediate crude slipped 0.4% to $92.46 a barrel after rising nearly 3% overnight; Brent remained above $102.
