Asian Markets Cautious Ahead of US Jobs Data as Fed Official Eases Rate Hike Expectations
Asian markets made cautious gains on Thursday ahead of a highly anticipated US jobs report due later in the day. The data is expected to show a modest rise of 56,000 jobs after a shock drop of 23,000 in August.
Federal Reserve Governor Christopher Waller's comments on Wednesday that recent data suggest signs of disinflation helped ease pressure on bond markets. He stated that if this trend continues, he would favour holding rates steady at the upcoming policy meeting.
As a result, money markets reduced their expectations for a Fed rate hike to 50%, down from around 63% just a day prior. The shift in sentiment comes as global bond yields have surged to multi-year highs due to concerns over inflation, government debt, and geopolitical tensions.