ASIA MARKETS: Shares Mixed, Currencies Fall Ahead Of US Jobs Report

Friday,   03-Dec-2021   09:49 AM (IST)

Asian shares and currencies dropped ahead of U.S. jobs report, that would help traders assess the pace at which the Federal Reserve will normalize policy. In Hong Kong, shares declined 1.3% and dropped 0.4% in Japan. South Korean equities were up 0.4% and the Chinese index added 0.2%. Malaysian markets were closed today. Futures on the S&P 500 Index declined after the gauge had its best session in almost two months yesterday. The focus of traders remained squarely on the impact of new coronavirus mutation and the risks posed by a Fed that is poised to normalize policy at a faster pace to tame inflation. Following Powell’s remarks that the Fed will consider increasing the taper pace at this month’s meeting, more policymakers reinforced the hawkish shift. San Francisco Fed President Mary Daly said it may be time to begin crafting a plan to raise rates to combat inflation Richmond Fed President Thomas Barkin said he supported normalizing policy, according to a Reuters report. Data due later today, the last before the December 14-15 Fed meeting, will help traders gauge how quickly the U.S. central bank could remove accommodation. U.S. employers are expected to have 550,000 jobs last month and the unemployment rate is tipped to tick lower to 4.5%. Ahead of the key report, data out yesterday showed less Americans filed for initial jobless benefits than was expected last week. Meanwhile, the U.S. Senate passed a bill that will help avert a federal shutdown. The bill was passed by the U.S. House of Representative earlier. Treasury yields were a tad lower ahead of the jobs report while dollar index ticked higher. Asian currencies were mostly lower, led by the Thai baht. Oil prices rose after a volatile session yesterday after OPEC and allies unexpectedly pushed ahead with the monthly oil output increases despite the uncertainty on the impact of the Omicron mutation.