MSCI’s broadest index of Asia-Pacific shares outside Japan was still 0.4 per cent higher, led by gains in South Korea and Australia
Asian shares were mixed on Monday while gold soared to all-time high above $2,100 at the beginning of a busy week for economic data that will test market wagers for early and aggressive rate cuts from major central banks in 2024.
Particularly, the U.S. November payrolls report on Friday needs to be solid enough to support the soft-landing scenario, but not so strong as to threaten the possibility of easing. Median forecasts are for payrolls to increase 180,000, keeping unemployment stable at 3.9 per cent.
Many analysts suspect risks are to the upside, with Goldman Sachs tipping 238,000 including a chunk of workers returning from strikes, and a jobless rate of 3.8 per cent.
There was also still a risk the Middle-East war could turn into a wider conflict with three commercial vessels coming under attack in the southern Red Sea.
MSCI’s broadest index of Asia-Pacific shares outside Japan was still 0.4 per cent higher, led by gains in South Korea and Australia. Japan’s Nikkei slipped 0.4 per cent as the yen extended recent gains.
Chinese blue chips dropped 0.2 per cent, while the People’s Bank of China set another firm fix for the yuan.
Trade figures for China are due later in the week with the recent trend being declining exports to the U.S. overshadowing gains in Asia.
EUROSTOXX 50 futures and FTSE futures were little firmer. S&P 500 futures slipped 0.1 per cent, after ending at a 20-month high on Friday, while Nasdaq futures shed 0.2 per cent. The S&P 500 is 19 per cent higher for the year so far and just 4 per cent away from its all-time high.
The latest surge was stoked by wagers the next move by the Fed will be to cut rates, with Federal Reserve Chair Jerome Powell on Friday declining the opportunity to push back hard against aggressive market pricing.
