Asian stock markets rise ahead of US jobs data

BEIJING

Asian stock markets rose on Friday ahead of an update on the health of the U.S. jobs market as the Federal Reserve ponders whether further rate hikes are needed to calm soaring inflation.

US futures and oil prices rose slightly.

Investors were eagerly awaiting monthly U.S. jobs numbers for signs of weakness that could prompt the Fed to decide it needs to ease aggressive rate hikes to calm inflation. Other data suggests the economy is slowing, which should reduce upward pressure on prices.

“There will likely be a strong focus on the resilience of job growth” after an uptick in jobless claims, ActivTrades’ Anderson Alves said in a report.

The Shanghai Composite Index rose less than 0.1% to 3,191.88 while the Hang Seng in Hong Kong rose less than 0.1% to 20,192.77.

The Nikkei 225 in Tokyo gained 0.7% to 28,131.87 after labor incomes in June rose 2.2% from a year ago, although forecasters warned that strength will not probably wouldn’t last. Workers receive semi-annual bonuses in June.

Seoul’s Kospi gained 0.7% to 2,490.91 and Sydney’s S&P ASX 200 rose 0.4% to 7,002.90.

Investors fear that rate hikes by the Fed and other central banks in Europe and Asia to rein in inflation that is at multi-decade highs could derail economic growth.

The Fed has raised its benchmark rate twice by 0.75 percentage points this year, three times its usual margin and the biggest increases since the early 1990s.

Fed officials have tried to calm fears that the United States could tip into a recession by pointing to a strong labor market as evidence that the economy can tolerate higher borrowing costs.

The number of Americans applying for unemployment benefits last week rose by a modest 6,000 from the previous week to 260,000, the Labor Department reported Thursday. Early applications typically reflect layoffs, but forecasters still see the labor market as one of the strongest sectors in the economy.

Data earlier this week indicated that the number of new U.S. job openings advertised had slipped, but were still near record highs.

On Wall Street, the benchmark S&P 500 closed down 0.1% on Thursday as investors digested corporate earnings reports and awaited jobs data.

The S&P 500 fell to 4,151.94 and the Dow Jones Industrial Average fell 0.3% to 32,726.82. The Nasdaq composite rose 0.4% to 12,720.58.

In energy markets, benchmark U.S. crude gained 30 cents to $88.84 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell from $2.12 the previous session to $88.54. Brent crude, the price basis for international trade, advanced 22 cents to $94.34 a barrel. It fell from $2.66 the previous session to $94.12.

The dollar gained 133.14 yen from 132.91 yen on Thursday. The euro fell to $1.0237 from $1.0249.