Asian stocks edged higher on Friday as US tech stocks posted some late gains following positive earnings from Meta Platforms Inc. and Amazon.com Inc., while investors turned their attention to the upcoming nonfarm payrolls data.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1.24% and logged a weekly surge of 0.6%. Japan’s Nikkei 225 index rose 0.13% before losing 0.25%. The index has increased 1.7% in the week.
Hong Kong’s Hang Seng added 0.63%, while the blue-chip Shanghai Shenzhen CSI 300 index eased 0.71% after a slight 0.10% gain.
The boost in Asian shares came after Meta and Amazon’s quarterly figures on Thursday surpassed expectations, leading their shares to soar 15.0% and 7.0% after the close, respectively. The advances added a combined $280 billion to stock market value.
On the other hand, iPhone maker Apple Inc. slipped 2.92% in after-hours trading as its fourth-quarter China sales of $20.82 billion missed analysts’ forecasts.
Nasdaq 100 futures remained in the green, trading 0.98% higher, while the S&P 500 futures climbed 0.55%.
Investors Focus on US Nonfarm Payrolls for Fed Cues
The upturn in Asia and the US is expected to ease concerns over US commercial real estate (CRE) and regional banks, which continue to be weighed down, for the time being.
The KBW Regional Banking Index was down 2.29% following a 6.0% fall the previous day.
The regional banking industry’s well-being became a subject of concern once more as the New York Community Bancorp (NYCB) Inc. saw more pressure in its CRE portfolio.
NYCB’s loss in the fourth quarter was due to a $552 million provision for loan losses, which its CRE portfolio has a share of. The holding company has stated one office loan and one co-op loan in its CRE portfolio.
While the dilemma of regional banks presents a slight headwind for sentiment in stock markets, it is not yet a matter that would prompt a policy move from the Federal Reserve.
Investors are currently focused on the US payrolls data set to be published later in the day. Economists expect the world’s largest economy to add 180,000 new jobs in January, while unemployment is estimated at 3.8%, rising from December’s 3.7%.
Jobless data will follow the unexpected growth in jobless claims and lackluster private payroll reading.
US payrolls may renew the potential for a March rate cut if it posted a downside miss. Traders gauge a 40% probability that the Fed would ease interest rates next month. A chance of a May reduction was at 34 basis points (bps), signaling a 100% possibility of 25 bps and some probability of a 50 bps cut.
