Asian equity markets nudged up this morning, snapping a two‑day fall that was sparked by worries over US tariffs. Traders are now looking ahead to Friday’s US jobs report and a possible Supreme Court ruling on former President Donald Trump’s tariffs.
Market Snapshot
Shares opened higher in Japan and Australia, while South Korea lagged behind. In the United States, the S&P 500 was flat on Thursday, but big tech names like Nvidia saw some selling. Treasury futures rose slightly, and mortgage‑backed securities gained after Trump announced a plan to buy $200 billion of mortgage bonds.
What’s Driving the Move?
- Tariff concerns easing: The market’s recent slump was tied to fears that Trump’s tariffs would stay in place.
- Shift to smaller stocks: Money is moving from high‑priced tech giants into smaller companies, softening the AI‑fuelled rally.
Upcoming US Jobs Data
Friday’s employment numbers are key. Economists expect the economy added about 70,000 jobs in December and that the unemployment rate will dip to 4.5%. The data will give clues about the Federal Reserve’s future interest‑rate moves. Money‑market traders are already pricing in at least two quarter‑point rate cuts in 2026.
Supreme Court Tariff Decision
The Court may decide on Trump’s tariffs as early as Friday. Hundreds of companies are waiting for the ruling so they can try to recover the billions of dollars they have paid in duties.
Other Market Moves
- The dollar stayed firm after its earlier gains.
- Oil prices kept rising as investors watched developments in Venezuela and Iran.
- Silver fell further from its recent high, while gold held steady.
- Mortgage‑bond prices rose and home‑lender stocks jumped after the announcement of the $200 billion bond purchase.
Takeaway
Asian markets are cautiously optimistic after the recent dip, but they remain sensitive to US data and the tariff ruling. Keep an eye on the payroll report and the Supreme Court decision, as both could steer market direction in the coming days.
Remember, this is just perspective, not a prediction. Do your own research before making any investment decisions.