Asian Stock Market: Trades cautiously ahead of US NFP data

Asia-pacific indices trade mixed on Friday recovering slightly from the previous day’s losses.
Higher US dollar pressurized the riskier assets as risk-sentiment cools down.
US-China tussle takes another round after Washington accuses Bejing of Human trafficking and forced labor.

Rekha Chauhan Independent Analyst

Asian stocks pared some of their previous day’s losses. Investors avoid riskier assets as await the key US Nonfarm Payroll data.

MSCI’s broadest index of Asia-pacific shares outside Japan lost 0.77%%.

The Shanghai Composite Index lost 1.5% to almost two weeks low amid escalating tensions between China and the US and its allies. As per the latest developments, the US State Department said in a report that China has a government policy of human trafficking and forced labor through the mass arbitrary detention of more than one million Uyghurs and other Muslims in Xinjiang.

The downbeat economic data released a day earlier also sours the sentiment. The Caixin Purchasing Managers Index (PMI) came lower than expected at 51.3 in June.

Kospi gained 0.10% and S&P ASX200 rose 0.5%.

Hong Kong’s Hang Seng index lost 1.4%, with the market reopening today after a holiday.

Japan’s Nikkei 225 gained 0.34%, while Topix added 0.76% gains.

The US Dollar Index (DXY) stands at 92.55, the strongest level since April 5 on the growing expectations that the Fed may raise interest rates sooner than expected.

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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