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Asian Stock Markets Edge Higher as Investors Await U.S. Jobs Data, Nikkei Outperforms

Asian Stock Markets Edge Higher as Investors Await U.S. Jobs Data, Nikkei Outperforms. Source: Flickr

Asian stock markets traded mostly higher on Friday, taking cues from a mixed close on Wall Street overnight as investors remained cautious ahead of the closely watched U.S. nonfarm payrolls report. The upcoming U.S. jobs data is expected to play a crucial role in shaping expectations around future Federal Reserve interest rate cuts, keeping global market sentiment subdued.

U.S. stocks ended Thursday with little overall movement. Technology stocks slipped after recent gains, placing pressure on the Nasdaq, while the Dow Jones Industrial Average and the S&P 500 closed nearly unchanged. Wall Street index futures were also largely flat during Asian trading hours, reflecting investor uncertainty before the key labor market release.

Across Asia, stock markets mirrored this cautious tone. South Korea’s KOSPI index traded flat after reaching record highs earlier in the week, driven by semiconductor sector gains. Shares of major chipmakers Samsung Electronics and SK Hynix declined between 1.5% and 3%, weighing on the index. Australia’s S&P/ASX 200 rose 0.3%, while Singapore’s Straits Times Index remained flat. Futures for India’s Nifty 50 also showed little change.

Japanese equities stood out as regional outperformers. The Nikkei 225 climbed 1%, and the broader TOPIX index gained 0.3%. The rally was supported by a weaker yen against the U.S. dollar, which improved earnings prospects for export-focused companies and boosted investor confidence in Japanese stocks.

In China, fresh economic data offered cautious optimism. Official figures showed that China’s consumer price index rose 0.8% year-on-year in December, marking its fastest pace in nearly three years. Monthly inflation increased 0.2%, while producer price deflation eased, suggesting stabilization in factory-gate prices. These trends indicate that China may be nearing the end of a prolonged deflationary phase that has weighed on economic growth, corporate profits, and consumer spending.

Chinese equities responded positively, with the CSI 300 index gaining 0.3% and the Shanghai Composite rising 0.6%. Hong Kong’s Hang Seng Index, however, traded flat. Overall, Asian markets remained cautious but resilient as investors awaited clearer signals from U.S. economic data and global monetary policy direction.

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