SYDNEY, Oct 6 (Reuters) – Asian stocks rose cautiously on Thursday as the dollar eased ahead of U.S. nonfarm payrolls data, and oil prices rose for a fourth day after deep production cuts promised by OPEC+ members.
MSCI’s broadest index of Asia-Pacific stocks outside Japan (.MIAPJ0000PUS) rose 0.4% in early trading in Asia, as US futures rose. The index is up 4% this week after falling 13% in September.
Japan’s Nikkei stock index (.N225) climbed 0.7% to its highest level since September, South Korea (.KS11) rose 1.2% and Australia (.AXJO) rose slightly increased by 0.1%. Hong Kong’s Hang Seng Index (.HSI), on the other hand, fell 0.5%.
Join now for FREE unlimited access to Reuters.com
S&P 500 futures rose 0.6% and Nasdaq futures gained 0.9%, building on a late rebound in US stocks that helped limit earlier losses. The S&P 500 (.SPX) ended Wednesday down 0.20% and the Nasdaq Composite (.IXIC) ended down 0.25%.
Mainland China markets remain closed for the holidays.
The Refinitiv Asia Energy Index (.TRXFLDAZPUENE) rose 0.7%, after the Organization of the Petroleum Exporting Countries and its allies agreed to cut the largest oil production since the start of the COVID pandemic -19, limiting supply in an already tight market. Read more
Oil prices rose for a fourth consecutive day to their highest level since mid-September. Brent crude futures rose 0.6% to $93.9 a barrel, while US West Texas Intermediate (WTI) crude futures also gained 0.6% to $88.26 the barrel.
SO MUCH FOR FED PIVOT
Earlier this week, US economic data suggesting the labor market and economy were slowing along with the Reserve Bank of Australia’s surprise decision to raise rates by just 25 basis points fueled hopes for US rate hikes. less aggressive interest rates by central banks and have heightened risk sentiment.
But those hopes were dashed after a slightly better-than-expected report from the Institute for Supply Management showed a rebound in the employment index for the US service sector.
“The optimism that had buoyed financial markets earlier in the week faded as U.S. data continued to signal the need for additional and decisive central bank policy action,” the analysts said. ANZ analysts.
“Attention is now firmly focused on the September labor market report… The market should expect a strong number.”
U.S. nonfarm payrolls data is due on Friday and analysts polled by Reuters expect 250,000 jobs to have been added last month and unemployment to hit 3.7%.
Overnight, San Francisco Federal Reserve Chair Mary Daly underscored the US central bank’s commitment to rein in inflation with more interest rate hikes, though she also said that the Fed would not just move forward if the economy started to crack. Read more
Atlanta Fed Chairman Raphael Bostic said the US Federal Reserve’s fight against inflation was likely “still in its early stages.” Read more
In currency markets, the dollar eased 0.2% against a basket of major currencies on Thursday, after climbing 0.7% overnight on hawkish comments from Fed officials.
US Treasury yields remained largely flat after jumping overnight.
The ten-year benchmark bond yield fell 2 basis points to 3.7368%, while the two-year bond yield stabilized at 3.7388%.
Gold was slightly higher. Spot gold was trading at $1,719.49 an ounce.
Join now for FREE unlimited access to Reuters.com
Reporting by Stella Qiu; Editing by Edwina Gibbs
Our standards: The Thomson Reuters Trust Principles.