Asia Shares Steady, Dollar Firm Before Jobs Test
Asian share markets got off to a quiet start on Monday as investors braced for a data-packed week culminating in a U.S. jobs report that could decide whether a rate cut expected this month will be regular or super-sized.
A holiday in the United States and Canada made for thin liquidity, while wins for far-right parties in German state elections added a fresh layer of political uncertainty.
The dollar was hanging on to gains made on Friday after upbeat spending figures led markets to trim the chance of a half-point easing from the Federal Reserve.
Crucial for the Fed will be the payrolls report on Friday where analysts look for a rise of 165,000 in jobs and a dip in the unemployment rate to 4.2%.
Fed Governor Christopher Waller and NY Fed President John Williams happen to be speaking after the job data, giving the market a near-instant reaction.
Asian markets mostly followed Friday's rally on Wall Street, with Japan's Nikkei up 1.0% and adding to last week's 8.7% bounce.
MSCI's broadest index of Asia-Pacific shares outside Japan edged down 0.1%, while South Korean stocks were flat.
Cash Treasuries were untraded for the holidays, while Treasury futures were little moved. Ten-year yields stood at 3.914% after rising in the wake of Friday's inflation and spending data.
That rise underpinned the U.S. dollar at 146.55 yen , having rallied 1.2% last week and it now faces chart resistance around 148.54.
The euro was stuck at $1.1046 , after losing 1.3% last week, with political uncertainty in Germany not helping.
The European Central Bank (ECB) is considered certain to cut its rates by a quarter point next week following benign EU inflation figures.
The firmer dollar combined with higher bond yields to pressure gold prices at $2,502 an ounce , short of its recent all-time top of $2,531.60.
Source : Reuters
