Asian markets experienced a mixed performance on Thursday, as the initial rally that characterized the start of the year took a pause. Investors are eagerly awaiting the release of key US jobs data, scheduled for later in the week. The geopolitical landscape is also being closely monitored, particularly after the US ousted Venezuela’s president and amid rising tensions between China and Japan.
The US jobs data, including job openings and unemployment claims, is set to be released on Thursday, followed by the non-farm payrolls report on Friday. The latter is a crucial indicator for the Federal Reserve’s decision-makers, who are set to meet at the end of the month to discuss potential interest rate cuts. According to Stephen Innes, managing partner at SPI Asset Management, “Attention is fixed squarely ahead, with Friday’s jobs report sitting dead centre in the crosshairs.”
Equity markets in Asia were largely subdued, with Tokyo, Hong Kong, Singapore, Wellington, and Jakarta recording declines. In contrast, Shanghai, Sydney, Taipei, and Manila saw modest gains. Seoul, however, continued its ascent, reaching multiple records, despite tech giant Samsung’s dip in share price after announcing a record $13.8 billion fourth-quarter profit.
The diplomatic tensions between China and Japan were exacerbated by China’s announcement of an anti-dumping probe into Japanese imports of a key chemical used in semiconductor production. This move comes after China banned the export of goods with potential military uses to Japan, further straining relations between the two Asian giants.
Oil prices saw a slight increase, following a steep decline on Wednesday, which was triggered by news of Venezuela’s plan to send millions of barrels of crude to the US. Traders are also keeping a close eye on a Supreme Court ruling, scheduled for Friday, regarding the legality of US President Donald Trump’s punitive tariffs. This landmark case has significant implications for Trump’s economic agenda.
In terms of key figures, the Tokyo Nikkei 225 index was down 0.6% at 51,660.50, while the Hong Kong Hang Seng Index declined 1.2% to 26,132.26. The Shanghai Composite index edged up 0.1% to 4089.17. The euro/dollar exchange rate was down at $1.1680, and the pound/dollar rate also declined to $1.3462. West Texas Intermediate crude oil was up 0.3% at $56.17 per barrel, and Brent North Sea crude rose 0.3% to $60.16 per barrel.
As investors await the release of key economic data and monitor the evolving geopolitical landscape, the significance of these events will become clearer in the coming days. The US jobs report and the Supreme Court ruling are likely to have a significant impact on market movements and economic decision-making.
