Tokyo: Asian shares got off on the back foot on Friday,
on track for a weekly loss, following Wall Street lower as caution
reigned ahead of U.S. employment data that may help determine whether
the Federal Reserve could raise interest rates as early as next month.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3
per cent in early trading, down about 1.6 per cent for the week, after
U.S. equities logged solid losses in the wake of disappointing earnings
results.
Japan's Nikkei stock index fell 0.2 per cent as investors awaited the
outcome of the Bank of Japan's two-day policy meeting later this
session, at which it is widely expected to maintain its stimulus
programme.
The key focus for investors came later in the global day, when
economists expect the U.S. employment report to show that 223,000 jobs
were created in July. On Thursday, U.S. jobless claims rose from the
previous week, though the positive trend was intact.
"Today's report on the US labour market is likely to be of even greater
than usual interest because of the Fed's 'data dependent' approach to
policy in what remains of 2015," strategists at Barclays said.
The dollar index stood at 97.810, on track for a weekly gain of about
0.5 per cent, its second straight weekly rise as this week's economic
data backed expectations that the U.S. central bank will deliver a rate
hike next month.
The dollar was steady on the day at 124.73 yen, while the euro edged slightly higher to $1.0924.
Sterling was not far from overnight lows hit after the Bank of England
sent a dovish message, with only one member voting for an immediate rate
hike versus expectations for at least two members. The pound was flat
at $1.5511, after falling as low as $1.5465.
In commodities trading, U.S. crude futures edged up after dropping to
multi-month lows overnight after a large drop in U.S. crude inventories
failed to boost prices.
U.S. crude was up about 0.2 per cent at $44.76 after skidding as low as
$44.20 on Thursday, not far from the six-year low of $42.05 hit in
March. Brent rose 0.2 per cent to $49.62 a barrel, pulling away from
Thursday's six-month low.
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