Asian Stocks Fall Ahead of US Nonfarm Payroll Data: Markets Wrap
Asian equities experienced a decline on Friday, following a tumultuous session on Wall Street characterized by fluctuating stocks and tariff-related headlines. Shares in Australia and Japan dropped by over 1% at the market open, while Hong Kong’s equity index futures also slipped. The decline in Japanese benchmarks mirrored a decrease in risk sentiment and a rally in the yen observed on Thursday.
The S&P 500 and Nasdaq 100 indices saw significant drops, with the tech-heavy Nasdaq nearing a technical correction. However, US futures partially recovered from these losses early Friday, buoyed by Broadcom Inc.’s positive revenue forecast. The chipmaker’s reassurance about ongoing spending on artificial intelligence computing led to a 15% surge in its shares during after-market trading.
The volatile market sentiment was further exacerbated by President Donald Trump’s decision to delay tariffs on Mexican and Canadian goods, which failed to spark a rebound in US stocks. This uncertainty, coupled with the anticipation of nonfarm payrolls data, contributed to a cautious atmosphere on Wall Street.
“Right now, trade policy is dominating market action,” noted Chris Larkin at E*Trade from Morgan Stanley. “Until the tariff situation becomes clearer, it could continue to be a bumpy ride for traders and investors.”
The post-hours rally extended to other tech companies, including Nvidia Corp. and Marvell Technology Inc., which had suffered significant losses during the main trading session. Trump’s exemption of Mexican and Canadian goods from tariffs under the USMCA until April 2, along with Treasury Secretary Scott Bessent’s comments downplaying the inflationary impact of tariff hikes, provided some relief.
In Asia, Chinese Finance Minister Lan Fo’an highlighted the central government’s fiscal policy tools and space to address potential challenges. The People’s Bank of China reiterated its commitment to a moderately loose monetary policy, including interest rate cuts and reductions in the reserve requirement ratio for lenders.
Upcoming nonfarm payrolls data is expected to offer insights into the future path of interest rates, considering the impacts of geopolitics, tariffs on global growth, and inflation outlook. Fed Chair Jerome Powell is scheduled to speak at a monetary policy forum, and policymakers are expected to maintain interest rates steady at their next meeting on March 18-19.
In commodities, oil prices saw a marginal gain, with West Texas Intermediate futures settling above $66 a barrel. Bitcoin traded above $90,000, reflecting continued interest in cryptocurrencies.
Key market movements included a 0.3% rise in S&P 500 futures, a 1.3% drop in Hang Seng futures, and a 1.9% decline in Japan’s Topix. The Bloomberg Dollar Spot Index remained unchanged, while Bitcoin rose 0.2% to $90,006.96.
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