Asian Shares Modestly Higher Before Pivotal US Jobs Report

(RTTNews) - Asian stocks eked out modest gains on Friday as weak U.S. labor market data reinforced expectations of a Federal Reserve rate cut later this month and U.S. President Donald Trump signed an executive order officially putting into action the U.S.-Japan trade agreement.

Regional gains, however, remained capped due to caution ahead of key U.S. jobs data due later in the day and amid concerns over Trump's heavy use of tariffs.

Trump said Thursday the United States will soon put a "fairly substantial tariff" on semiconductors coming into the country, after previously threatening a 100-percent levy on the chips.

Chinese shares rebounded after falling by the most in five months on Thursday following reports that the country's financial regulators are considering a number of cooling measures for the stock market.

The benchmark Shanghai Composite index rallied 1.24 percent to 3,812.51 on hopes that Beijing can keep stock prices rising while avoiding speculative bubbles. Hong Kong's Hang Seng index surged 1.43 percent to 25,417.98.

Japanese markets rose sharply, with auto and technology stocks leading the surge after U.S. President Trump signed the executive order cutting the tariff on the country's automotive imports.

Investors also cheered data that showed Japan's household spending rose by an annual 1.4 percent in July, slightly up from the previous month's 1.3 percent increase.

The Nikkei average jumped 1.03 percent to 43,018.75 while the broader Topix index settled 0.82 percent higher at 3,105.31.

Seoul stocks ended higher for a fourth consecutive session, with the Kospi average closing up 0.13 percent to 3,205.12. SK Hynix climbed 3 percent while Samsung Electronics declined 0.9 percent.

Hyundai Motor shed 0.7 percent after reports that up to 450 workers at a Hyundai Motor facility under construction in Georgia have been detained in a major raid by U.S. authorities in a major immigration enforcement operation.

Australian stocks closed higher, led by gains across big four banks, consumer discretionary, real estate and gold stocks.

The benchmark S&P/ASX 200 rose 0.51 percent to 8,871.20 but posted its first weekly decline after rising for four consecutive weeks. The broader All Ordinaries index ended up 0.54 percent at 9,140.50.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 0.69 percent to 13,223.53, extending gains from the previous session to reach a two-week high.

The dollar weakened and gold held near record levels in Asian trading ahead the pivotal U.S. jobs data later in the day.

Economics expect another tepid report that might show slowing job growth and rising unemployment due to Trump's unpredictable trade policies.

Oil headed for its first weekly loss in three on fears of oversupply and OPEC+ policy uncertainty.

Overnight, U.S. stocks bounced back after days of losses. The tech-heavy Nasdaq Composite rallied 1 percent as softer labor market data showing weaker than expected private sector job growth in August and a rise in applications for unemployment benefits to the highest since June fueled fresh hopes for a Federal Reserve rate cut this month.

The S&P 500 and the Dow both climbed around 0.8 percent to reach new record closing highs.