Dollar Pauses Before U.S. Jobs Data as Stocks Dictate Flows

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The dollar held losses against developed-market peers amid concern that a weak U.S. payrolls number following a report showing manufacturing stagnated could scupper an interest-rate increase by the Federal Reserve this year.

The greenback weakened Thursday after gains last month and in the third quarter as investors prepared for Friday’s September employment report. Anemic demand from China meant fewer factory orders in the U.S. in September, causing the Institute for Supply Management’s factory index to fall its lowest level since May 2013. A measure of global equities has dropped about 4 percent since Fed Chair Janet Yellen refrained from increasing rates on Sept. 17, citing international uncertainty and tepid inflation.

The Bloomberg Dollar Spot Index, which tracks the currency against 10 major peers, was at 1,211.88 as of 9:48 a.m. in Tokyo from 1,212.41 in New York, headed for a 0.2 percent weekly decline. The index gained 0.6 percent in September and 2.8 percent during the third quarter.

Source : Bloomberg

Gold Poised for Biggest Weekly Loss Since July Before Jobs Data

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Gold headed for the biggest weekly decline in more than two months as investors looked to the U.S. nonfarm payrolls report Friday for signals on the strength of the economy, which will help determine when the Federal Reserve raises interest rates.

Bullion for immediate delivery was at $1,113.13 an ounce at 8:43 a.m. in Singapore from $1,113.61 Thursday, according to Bloomberg generic pricing. Prices fell 2.9 percent this week, the most since the five days ended July 24.

The jobs data will be scrutinized for signs of whether China’s slowdown and the steepest quarterly rout in global stocks since 2011 have shaken the U.S. recovery. The Labor Department report is projected to show payroll gains accelerated last month compared with August. Gold fell for five straight quarters through Sept. 30 as the prospect of higher rates reduced the metal’s appeal because it doesn’t pay interest.

Source: Bloomberg

Japan Stocks Extend Weekly Decline Before U.S. Employment Report

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Japan’s stocks fell, with the Topix index extending its third weekly drop, after a report showed the weakest growth in U.S. manufacturing since 2013. Steelmakers and electronics manufacturers led declines.

The Topix slipped 0.7 percent to 1,433.36 as of 9:02 a.m. in Tokyo, heading for a weekly decline of 1.4 percent. The Nikkei 225 Stock Average lost 0.8 percent to 17,588.24. The yen strengthened 0.1 percent to 119.84 per dollar. The Institute for Supply Management’s factory index showed U.S. manufacturing barely grew in September as a stronger dollar and faltering overseas markets led to the slowest pace of orders since November 2012. Data on jobs growth in the world’s biggest economy is due Friday.

Bank of Japan officials see little need for an immediate expansion of monetary stimulus and would prefer to hold off to get a clearer picture of the economic outlook, according to people familiar with their deliberations. Board members who gather for a policy meeting next week want to observe further economic data and developments in financial markets at home and abroad, according to the people, who asked not to be named because talks are private.

Source : Bloomberg

Asian Stocks Drop as Investors Await Monthly U.S. Jobs Report

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Asian stocks rose fell as investors awaited a monthly government report on U.S. jobs to gauge the strength of the world’s largest economy.

The MSCI Asia Pacific Index dropped 0.4 percent to 125.26 as of 9:00 a.m. in Tokyo. Economists expect U.S. employers to have added about 201,000 workers in September after a gain of 173,000 in August. The data will factor into the Federal Reserve’s next rate decision, due Oct. 28, as the central bank also weighs global financial-market turmoil.

The regional benchmark index’s drop Friday trimmed its advance this week to 0.2 percent with mainland Chinese markets currently shut for a week-long holiday.

Japan’s Topix index retreated 0.6 percent. Bank of Japan officials see little need for an immediate expansion of monetary stimulus and would prefer to hold off to get a clearer picture of the economic outlook, according to people familiar with their deliberations.

Board members who gather for a policy meeting Oct. 6-7 want the opportunity to observe further economic data and developments in financial markets at home and abroad, according to the people, who asked not to be named because talks are private.

Source: Bloomberg

Asian Stock Futures Drop as Rally Wavers Ahead of Payrolls Data

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Asian index futures signaled a pull back Friday as the recovery in global equities after the third-quarter selloff struggles to gain traction ahead of key U.S. employment data.

Futures on stock gauges in Japan and Australia were lower in recent trading, as European shares resumed losses and equities in the U.S. slid more than 1 percent before ending the Thursday session up 0.2 percent.

Futures on Japan’s Nikkei 225 Stock Average were bid down by 0.5 percent to 17,610 in the Osaka pre-market, after contracts on the broader Topix index slipped 0.8 percent. Yen-denominated futures on the Nikkei 225 traded in Chicago were little changed at 17,630 after rising 0.8 percent in the previous session. Japan updates its jobless rate Friday, along with its monetary base for September.

New Zealand’s S&P/NZX 50 Index, the first major stock gauge to start trading each day in the Asian region, added 0.1 percent following three days of losses. Futures on Australia’s S&P/ASX 200 Index dropped 0.4 percent, while those on the Kospi index in Seoul declined 0.1 percent.

Markets in Hong Kong resume Friday after a holiday, while trading in mainland China doesn’t reopen until next Thursday because of the National Day break. Indian markets are also shut for a holiday Friday.

Source: Bloomberg