Asian markets deepen slump as jobs data clouds rate outlook
Asian shares extended the global sell-off after a closely watched US jobs report failed to clarify whether the Federal Reserve will cut interest rates, leaving investors grappling with fresh uncertainty.
European markets are bracing for a sharply weaker open, with the Euro Stoxx 50 down 1.4pc in premarket trading and the FTSE 100 lower by 1pc, as the risk-off mood spreads.
Overnight, Wall Street retreated on renewed fears that tech stock valuations have become overstretched — despite Nvidia’s stellar forecasts. The volatility pushed the Nasdaq to its widest one-day swing since April 9, when Trump-era tariff shocks rattled global markets.
While data showed the US economy added far more jobs than expected in September, the picture was muddied by a higher unemployment rate and downward revisions to previous months. That ambiguity has complicated the Fed’s decision-making ahead of next month’s meeting.
Treasury yields slipped as futures markets raised the implied probability of a December rate cut to 40pc, up from 30pc a day earlier — though investors remain unconvinced that easing is imminent, particularly with the next jobs report due only after the Fed meets.
Across Asia, the sell-off intensified. MSCI’s broadest Asia-Pacific index (excluding Japan) plunged 2.2pc on Friday, pushing its weekly loss to 3.5pc, the worst since early April.
Japan’s Nikkei fell 2.2pc and is now down 3.3pc for the week, while Taiwan’s market dropped 3.4pc and South Korea slumped 3.7pc.
Chinese markets were also hit. The CSI 300 and Hong Kong’s Hang Seng both declined 1.5pc, adding to the sense of global retreat.
Wall Street ended sharply lower after an early burst of optimism fizzled out. The S&P 500 closed down 1.5pc on Thursday, the tech-heavy Nasdaq fell 2.2pc, and the Dow Jones Industrial Average slipped 0.8pc, underscoring persistent unease about the outlook for equities.
