Asia Awaits US Jobs Report as Oil Prices Rise Amid Tensions

Asian markets were cautious ahead of the US jobs report on Friday, which could impact interest rates in August. The MSCI Asia-Pacific index excluding Japan held steady, while Japan's Nikkei declined by 0.9% despite a weekly gain of 1.2%. South Korea's KOSPI slipped 0.5%, marking its seventh consecutive week of losses.

Forecasts predict an increase of 80,000 jobs in July, following June's 57,000 gain, with the unemployment rate expected to remain at 4.2%. Michael Feroli, chief US economist at JPMorgan, stated that a strong jobs number would reinforce higher interest rates and upward pressure on policy.

Conversely, a soft payrolls report could lead to lower yields and a dovish monetary policy shift. Brent crude futures rose by 1% to $83.38 per barrel due to escalating tensions in the Middle East, with Yemen's Houthis attacking Saudi Arabia.