Global Markets-Asian shares pause for US jobs, oil extends gains on Mideast risk

Asian shares held their breath on Friday ahead of U.S. jobs data that could prove pivotal for next month's interest-rate decision by the Federal Reserve, while rising oil prices served as a reminder that Middle East tensions remain far from resolved.

MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.1% and was down 0.5% for the week. Japan's Nikkei dropped 0.5% although it was set for a weekly rise of 1.7%.

South Korea's KOSPI also fell 0.5% and was down 5.1% for the week for a seventh straight week of declines. The index had doubled in the first half of the year, swept up by the blistering demand for AI-linked chip stocks.

China's CSI 300 rose 0.8% after data showed China's huge export machine kept powering ahead to boost the economy.

After bouts of volatility sparked by concerns over the durability of the AI-driven rally, investors are now squarely focused on the U.S. payrolls report due later in the day, which could prove crucial for the interest-rate outlook. Forecasts are centred on a rise of 80,000 jobs for July after a 57,000 gain in June, with the unemployment rate forecast to hold steady at 4.2%.