EQUITIES
Chinese shares advanced after mainland markets reopened from a week-long holiday. The Shanghai Composite was up 0.33% on Friday, while the Hong Kong’s Hang Seng index slipped 0.26%.
Japan’s Nikkei 225 surged 1.65%, the S&P/ASX 200 in Australia rose 0.75%, and the S&P BSE Sensex in India added 0.53%. In Southeast Asia, the Straits Times index in Singapore was up 0.11%. In South Korea, the KOSPI was flat.
Overnight on Wall Street, the S&P 500 rallied 0.8% to 4,399.76 and the technology-focused Nasdaq Composite jumped nearly 1.1% to 14,654.02. The Dow Jones Industrial Average rose 0.98% to end at 34,754.94 points.
European markets are expected to open flat later today, ahead of key employment report.
OIL
Oil prices rose on Friday, tracking towards a 4.2% gain for the week on signs some industries have begun switching fuel from high priced gas to oil, and on doubts the U.S. government would release oil from its strategic reserves for now. The U.S. Energy Department said it has no plans “at this time” to tap into the nation’s oil reserves to help quell rising fuel prices.
The Brent now traded at $82.89 per barrel, while U.S. crude futures traded at $79.32 per barrel.
Overnight, the Brent ends at $81.95 a barrel, and the WTI at $78.30 per barrel.
CURRENCIES
U.S. Treasury yields rose ahead of the U.S. employment data for September that is due later. The benchmark 10-year U.S. Treasury yield rose 1.8 basis points to 1.589%, its highest since June when it touched 1.594%.
The dollar index hovered below a one-year high, was little changed at 94.248 after trading in a tight range on Thursday, staying within sight of last week's high of 94.504, a level not seen since late September 2020.
The recent sharp rally in Bitcoin paused around the $54,000 level.
GOLD
Gold held steady on Friday as investors stayed on the sideline ahead of the U.S. non-farm payrolls report that is considered key to the Federal Reserve's stimulus taper timeline.
Spot gold was steady at $1,757.70 per ounce, down about 0.3% so far in the week. The U.S. gold futures was flat at $1,758.60 per ounce.
Spot silver fell 0.74% to $22.49 per ounce, platinum slipped 0.20% to $983.40 per ounce, and palladium eased 0.70% to $1,941.50.
ECONOMIC OUTLOOK
Asian shares rose on Friday on easing concerns about the U.S. debt ceiling and an energy crunch. Traders are awaiting the key U.S. jobs data for any fresh insight into the timing of Federal Reserve tapering, as well as the start of trading in China after a holiday.
Chinese shares returned from a one-week holiday upbeat. The China Evergrande Group debt crisis still casts a shadow over the wider market. Friday’s gains will be remains uncertain for investors amid problems ranging from an energy shortage to debts of property developers and an ongoing regulatory crackdown on private enterprise.
Activity in China’s services sector grew in September, data from a private survey showed on Friday. The Caixin/Markit services PMI rose to 53.4 from 46.7 in August.
The U.S. Senate approved legislation to temporarily raise the federal government's $28.4 trillion debt limit and avoid the risk of a historic default this month, but it put off until early December a decision on a longer-lasting remedy.
Investors next are keeping an eye on U.S. employment data for September due later today. The employment figures that are near consensus will lead the Federal Reserve to indicate at its November meeting when it will begin tapering its massive stimulus program. On Thursday. The U.S. initial jobless claims data showed that applications for unemployment insurance had declined last week.
Fed Chairman Jerome Powell had signalled last month there was broad agreement among policymakers to begin reducing the central bank's monthly asset purchases as soon as November, if the September jobs report was "decent."
