Asian Stocks Plunge Amid Wild Swings in Bonds and Currencies

Asian shares declined on Friday as investors struggled to cope with intense fluctuations in bond and currency markets ahead of crucial US jobs data. The region's stocks fell, led by Japan's Nikkei, which dropped 1.1% but was set for a weekly gain of 2.8%. Mainland Chinese markets were closed through next Wednesday for a public holiday.

The US nonfarm payrolls report due later in the day is a key focus, with forecasts centered on a gain of 90,000 jobs in September and a steady unemployment rate of 4.1%. A strong print could revive bets on a second interest rate hike from the Federal Reserve this month, currently priced at just 25%.

Chester Weston, head of research at Pepperstone, noted that 'a hot wages print could prove particularly influential for US rates, Treasuries, and the USD.' He also warned that 'a sustained increase in term premium could be far more problematic' for risk assets.