A volatile week looked set to end on a positive note as a series of figures indicated the US labour market and economy were slowing, fuelling speculation the US Federal Reserve will be able to cut interest rates in early 2024.
Hopes for a lower rate environment were behind a stock rally last month, though December has been a little tougher owing to worries the buying may have been overdone.
There is also some reticence among traders owing to concerns that the weaker economic readings suggest the world's number one economy could tip into recession.
Friday's figures come as inflation continues to come down and US job openings and private payrolls slowed in November.
"The jobs report is likely to provide additional indications of the labour market softening, a welcome sign for employers," said Jose Torres at Interactive Brokers.
"Its impact on markets, however, will depend on whether investors view the data as a stepping stone to a March rate cut and soft landing, or an adverse effect on consumer spending and a sharper economic slowdown."
Wall Street's three main indexes ended on a strong note, led by the Nasdaq as tech giants outperformed.
Asia mostly rose but traders lacked enthusiasm.
Shanghai, Sydney, Seoul, Singapore, Mumbai, Bangkok and Taipei rose but Hong Kong and Bangkok fell while Wellington was flat.
London rose at the open, as did Paris and Frankfurt.
Tokyo dropped more than one percent as the yen continued to rise against the dollar, hurting exporters.
The currency surged almost four percent at one point Thursday after Bank of Japan boss Kazuo Ueda said handling monetary policy "will become even more challenging from the year-end and heading into next year".
The remarks suggested the bank was on the brink of shifting away from its long-running ultra-loose monetary policy put in place to kickstart growth.
The comments were made a day after deputy governor Ryozo Himino played down the adverse consequences of such a move on the economy.
The yen strengthened to 141.71 per dollar at one point Thursday, compared with more than 147 earlier in the day before being reeled in. An early surge Friday also ran out of steam.
The yen has been one of the year's worst performers owing to the BoJ's refusal to budge on policy even though most other central banks have hiked rates to battle inflation.
But it has regained some of its mojo as the Fed turns more dovish and Japanese policymakers more hawkish.
However, analysts said the rally may have gone too far and questioned whether the BoJ would make any big moves soon.
Its next policy decision comes later this month.
Analysts also said the big moves may have been down to short-sellers shifting out of their positions.
"The odds of tightening administered rates on December 19 are still a bit of a long shot," said Bipan Rai of CIBC.
Monex USA's Helen Given added: "We still don't necessarily believe Ueda's words will actually come to fruition."
The latest move "looks a bit overdone to me", she said, adding that she saw the currency ending the year at 146 to the greenback.
- Key figures around 0810 GMT -
Tokyo - Nikkei 225: DOWN 1.7 percent at 32,307.86 (close)
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 16,334.37 (close)
Shanghai - Composite: UP 0.1 percent at 2,969.56 (close)
London - FTSE 100: UP 0.1 percent at 7,523.39
Dollar/yen: DOWN at 143.98 yen from 144.10 yen on Wednesday
Euro/dollar: DOWN at $1.0774 from $1.0797
Pound/dollar: DOWN at $1.2564 from $1.2587
Euro/pound: UP at 85.77 pence from 85.76 pence
West Texas Intermediate: UP 2.0 percent at $70.70 per barrel
Brent North Sea crude: UP 2.0 percent at $75.56 per barrel
New York - Dow: UP 0.2 percent at 36,117.38 (close)
Related Links
Global Trade News
| Subscribe Free To Our Daily Newsletters |
| Subscribe Free To Our Daily Newsletters |
