Asian Stocks Plunge Amid Bond Volatility Ahead of US Jobs Data
Asian stocks took a hit on Friday as investors struggled to make sense of volatile bond and currency markets ahead of key US jobs data. The Hang Seng Index plummeted 513 points, or 2.09 percent, to open at 24,099 in Hong Kong.
The China Enterprises Index was down 141 points, or 1.7 percent, lower at 8,078 while the tech index fell 76 points, or 1.81 percent, to 4,176. Bond markets remained turbulent, with the benchmark 10-year US Treasury yields hitting their highest level since 2002 at 5.34 percent before retreating.
Fiscal worries in France pushed the spread between French and German sovereign bond yields above 140 basis points, rattling European stocks and hitting the euro hard. The single currency slid as far as $1.1215, its lowest point since May 2025, against the US dollar.
Market attention is focused on the upcoming US nonfarm payrolls data, with forecasts predicting a rise of 90,000 jobs in September. According to Chris Weston, head of research at Pepperstone, 'a hot wages print could prove particularly influential for US rates, Treasuries and the USD.'