Asian markets rise as US jobs data fuels rate cut hopes; gold hits record, oil slips

Asian stock markets mostly edged higher on Thursday morning, tracking overnight gains on Wall Street after weaker-than-expected US jobs data raised hopes of an interest rate cut by the Federal Reserve.

Tokyo, Seoul, Sydney, and Taipei posted gains during early trading hours, while Shanghai fell 0.9% and Hong Kong slipped 0.2%. The Shanghai drop was led by a sharp fall in shares of Chinese chipmaker Cambricon, which plunged more than 9% amid pressure in the semiconductor sector.

The positive sentiment across many Asian markets followed a rebound in US and European equities on Wednesday, as a global bond selloff eased. Alphabet, Google’s parent company, surged nearly 9% after a US judge declined to order the breakup of its Chrome browser operations in a major antitrust case. Apple also benefited, rising nearly 4% due to a favorable ruling on its deal to keep Google search as default on iPhones.

Investor optimism was also fueled by a US labour market report that showed a decline in job openings, interpreted as a sign that rate hikes may no longer be necessary. Stephen Innes of SPI Asset Management noted, “When the US dollar slides, Asian assets instantly look more attractive in currency-adjusted terms.”

Meanwhile, gold hit a new high as investors grew wary over rising global debt levels, and Japanese bond yields climbed sharply. The 30-year yield hit a record 3.29%, while 20-year yields rose to their highest since 1999.

In Japan, political uncertainty also loomed as concerns grew that Prime Minister Shigeru Ishiba could be forced to step down following turmoil in his ruling party.

Oil prices continued to slide, with West Texas Intermediate down 0.6% at $63.60 and Brent crude down 0.5% at $67.25, as traders anticipated a rise in supply due to OPEC+ easing production cuts.

Key figures at 0215 GMT:

Tokyo – Nikkei 225: UP 0.9% at 42,327.34

Hong Kong – Hang Seng Index: DOWN 0.2% at 25,299.52

Shanghai – Composite: DOWN 0.9% at 3,780.21

Euro/dollar: DOWN at $1.1654 from $1.1663

Pound/dollar: DOWN at $1.3432 from $1.3445

Dollar/yen: DOWN at ¥148.11 from ¥148.12

Euro/pound: UP at 86.77 pence from 86.75 pence

WTI crude: DOWN 0.6% at $63.60

Brent crude: DOWN 0.5% at $67.25

New York – Dow Jones: DOWN 0.1% at 45,271.23 (close)

London – FTSE 100: UP 0.7% at 9,177.99 (close)