Asian markets steady as investors brace for key economic data

Asian markets started the week quietly as investors prepared for a data-heavy week, including a crucial US jobs report that could influence the size of an expected rate cut.

Thin liquidity due to holidays in the US and Canada, along with wins for far-right parties in German state elections, added to political uncertainty.

The dollar held onto gains from Friday following positive spending figures that reduced expectations of a larger rate cut by the Federal Reserve.

Japan’s Nikkei index gained 0.5 per cent, MSCI Asia-Pacific index and South Korean stocks showed little movement. Chinese blue chips dipped 0.6 per cent, primarily due to a slowdown in home price growth.

In the currency markets, the US dollar remained strong against the Japanese yen, while the euro was under pressure due to political uncertainty in Germany.

The European Central Bank is expected to cut its rates by a quarter point next week, but the extent of future cuts remains uncertain.

The stronger dollar and rising bond yields pushed gold prices down to $2,497 an ounce, below its recent peak of $2,531.60.

Oil prices also declined as the market considered the possibility of OPEC+ increasing supply in October.

Brent dropped 42 cents to $76.51 per barrel, and US crude fell 38 cents to $73.17 per barrel.

Attribution: Reuters

Subediting: M. S. Salama