Asian Markets Slide as Wall Street Awaits Jobs Report and Bond Yields Peak
Asian markets fell on Friday while Wall Street futures edged higher ahead of the September jobs report. U.S. 10-year Treasury yields spiked to a 24-year high.
Asian markets traded mostly lower on Friday as the Hang Seng index in Hong Kong tumbled nearly 3% following its return from holidays, while Japan's Nikkei dropped 1% after sharp gains the previous session. Meanwhile, Wall Street futures edged higher ahead of the highly anticipated September employment report.
Wall Street Awaits Jobs Report and Bond Yields
Futures on the Nasdaq 100 rose 0.4%, S&P 500 futures gained 0.3%, and Dow Jones futures added 0.2%. Overnight, New York equities closed moderately higher, though all three major indices remained on track for weekly losses. The Dow was down 1.7% for the week.
Simultaneously, the U.S. Treasury market drew intense focus as the 10-year yield spiked to 5.344%—its highest level since 2002—before moderating. The 30-year yield also touched a 24-year peak. Oil prices surged sharply as well, with Brent crude jumping over 4% to settle at $102.31 a barrel, driven by reports of U.S. troop deployments to the Middle East.
Labor Market Forecasts and Federal Reserve Outlook
Friday's central focus is the September jobs report. According to Dow Jones consensus estimates, the U.S. economy is projected to add 84,000 jobs, with the unemployment rate holding steady at 4.1%.
"We expect the pace of job growth to moderate compared to August, but still remain positive," said Christopher Hodge, chief U.S. economist at Natixis CIB Americas.
Investors continue reevaluating the path of U.S. interest rates. Fed funds futures currently price in a 72% probability that the Federal Reserve will leave rates unchanged at its upcoming October meeting.
