Asian Stocks Plummet Amid Bond, Currency Volatility Ahead of US Jobs Data

Asian stocks fell on Friday as investors struggled to come to terms with wild fluctuations in bond and currency markets ahead of key US jobs data. The US nonfarm payrolls figure is due later in the day, with forecasts centered on a gain of 90,000 jobs in September.

A strong print could revive bets on a second rate hike from the Federal Reserve this month, currently priced at just 25% after two top policymakers said they wanted more data before deciding what to do next with interest rates. A move in December is still fully priced in.

The US ISM Manufacturing PMI showed a significant jump in the prices paid component, indicating increased cost pressures. With the Fed focused on inflation and price pressures, a hot wages print could be particularly influential for US rates, Treasuries, and the USD, according to Chris Weston, head of research at Pepperstone.

Asian markets were also impacted by the widening US military buildup in the Gulf, which kept oil prices elevated. The US West Texas Intermediate crude futures slipped 0.4% to $92.46 a barrel on Friday, after rising nearly 3% overnight.