Asian equities made modest moves on Thursday, with most investors holding back from long-term risk positions ahead of critical US payroll data due Friday. A regional stock gauge reversed earlier gains, as Japanese shares extended losses, dragged down by weaker-than-expected demand in a 30-year government bond auction.
The yield on 10-year US Treasuries climbed 2 basis points, following a Wednesday rally in bonds across the yield curve. That rally was triggered by economic data showing a contraction in US service sector activity and a slowdown in hiring, signaling potential cracks in the labor market.
In the currency markets, the US dollar weakened against all of its Group-of-10 peers in Asian trading, underscoring investor caution and a shift toward safer assets.
Investor sentiment remains muted, as traders await Friday’s jobs report for clearer signals on the health of the US economy and possible shifts in Federal Reserve policy. The data is expected to influence global market direction heading into the next quarter.
Despite recent signs of economic deceleration—blamed on tariffs and persistent uncertainty—a global stock index closed at a record high on Wednesday, supported by optimism that the worst of recent market volatility may have passed. Analysts linked some of the rebound to calming after the shock of President Donald Trump’s “Liberation Day” announcement two months ago, which initially rattled global markets.
