Major Asian stock indices are poised to open lower as investors brace for the U.S. November nonfarm payrolls report, with expectations pointing to modest job growth. Market participants await data that could influence Federal Reserve policy trajectories.
- Nikkei 225 futures indicate a 0.7% opening decline
- Hang Seng and Kospi futures project 0.6% and 0.5% drops respectively
- U.S. November nonfarm payrolls forecast at 180,000 jobs
- Unemployment rate expected to hold steady at 4.1%
- 10-year U.S. Treasury yield rose to 4.62% in early trading
- Yen weakens to 149.2 per dollar, AUD drops to $0.648
Asian equity markets are set to open on a cautious note ahead of the U.S. November employment report due Friday, with futures indicating losses across key benchmarks. The Nikkei 225 futures pointed to a 0.7% decline at the open, while Hong Kong’s Hang Seng index futures signaled a 0.6% drop. South Korea’s Kospi futures also projected a 0.5% downturn, reflecting broad regional nervousness. The focus is squarely on the U.S. Bureau of Labor Statistics' release of November nonfarm payrolls and the unemployment rate. Economists anticipate a gain of around 180,000 jobs, slightly below the previous month's 214,000, while the unemployment rate is expected to remain steady at 4.1%. Any deviation—particularly if job growth exceeds 200,000 or wage inflation accelerates—could reinforce expectations of delayed rate cuts by the Federal Reserve. Data from the prior month showed wage growth rising at a 3.9% annualized pace, fueling concerns about persistent inflation pressure. A stronger-than-expected labor market could prolong the Fed’s hold on rates, impacting global risk assets. Meanwhile, bond yields have already reacted: the 10-year U.S. Treasury yield climbed to 4.62% on Tuesday, up from 4.51% the previous week, signaling tightening financial conditions. Regional currencies are also under pressure, with the yen weakening to 149.2 per dollar and the Australian dollar dipping to $0.648. These movements reflect broader risk aversion ahead of the pivotal economic data. Investors across Asia are trimming positions in tech-heavy and cyclical stocks, favoring defensive sectors such as utilities and healthcare.