FXEMPIRE
All

Asian Shares Firm Ahead of US NFP Report; Japan Household Spending Disappoints

The Wall Street Journal reported Thursday that Washington and Beijing are still in disagreement over the size of China’s agricultural purchases. Meanwhile, China has given little indication on how negotiations with the U.S. are progressing.
James Hyerczyk
Asian Shares

The major Asia Pacific stock indexes are trading higher on Friday as traders prepare for the release of the U.S. Non-Farm Payrolls report for November, due to be released at 13:30 GMT. The South Korean KOSPI Index is posting the biggest gain, helped by a more than 2% jump in shares of industry heavyweight Samsung Electronics and chipmaker SK Hynix.

At 05:18 GMT, Japan’s Nikkei 225 Index is trading 23357.13, up 57.04 or +0.25%. Hong Kong’s Hang Seng Index is at 26385.20, up 168.16 or +0.64% and South Korea’s KOSPI Index is at 2078.26, up 17.52 or +0.85%.

China’s Shanghai Index is at 2900.23, up 0.76 or +0.03% and Australia’s S&P/ASX 200 Index is trading 6703.00, up 20.00 or +0.30%.

Trade News Update

The Wall Street Journal reported Thursday that Washington and Beijing are still in disagreement over the size of China’s agricultural purchases. Meanwhile, China has given little indication on how negotiations with the U.S. are progressing.

However, investors are hanging on to hope of a near-term trade deal after Bloomberg News reported Wednesday, citing sources, that both countries were inching closer to securing an agreement on the amount of tariffs that would be rolled back in a limited trade deal. President Trump also said Wednesday that he believed trade talks with Beijing were going “very well.”

Earlier in the week, stocks dropped sharply after Trump said he may delay a trade deal with China until after the 2020 U.S. presidential election.

Obviously, there are disagreements, but the markets seem to be consolidating because the negative news is not escalating and trade talks have not broken down either.

Japan’s Households Cut Spending amid Impacts from Sales Tax, Typhoon

Japanese households cut their spending for the first time in almost a year in October as a sales tax hike prompted consumers to rein in expenses and natural disasters disrupted business.

Household spending dropped 5.1% in October from a year earlier, government data showed on Friday, down for the first time in 11 months and the biggest fall since March 2016 when spending fell 5.3% and weaker than the median forecast for a 3.0% decline.

While the government has sought to offset the hit to consumers through vouchers and tax breaks, there are fears the higher tax could hurt an economy already feeling the pinch from global pressures.

Friday’s Events

The U.S. Labor Department is set to release the tally of nonfarm payrolls for November. Economists polled by Dow Jones are expecting 187,000 jobs were added last month. The Unemployment Rate is expected to stay at 3.6% in November, near the lowest in 50 years. Average Hourly Earnings are expected to have risen 0.3%.

Consumer sentiment in December from the University of Michigan’s Surveys of Consumer data is expected to come in at 96%, up from 95.6 in November.

Traders should also pay attention to Larry Kudlow, White House National Economic Council Director, when he joins CNBC’s “Squawk on the Street” on Friday. He could offer some valuable insight into how well the trade talks have been going.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US