Japan’s Nikkei rose 0.39%, while South Korea’s Kospi rose 0.77%. The Australian stock index rose 0.56%.
Hong Kong’s Hang Seng was up 0.6%, although major mainland Chinese stocks (CSI300) were unchanged at the start of the session.
MSCI’s broader index of Asia-Pacific stocks gained 0.29%, putting it on track for a 1.55% gain for the first week of 2023, its best weekly performance in a month .
U.S. E-mini stock futures rose 0.35%, indicating a small rebound after the S&P 500 fell 1.16% overnight.
Wall Street sold off amid concerns that labor market strength could keep the Fed from hiking rates for longer, after data released on Thursday showed a larger-than-expected rise in private sector jobs and a decline in unemployment claims.
“There are concerns that the labor market is showing no signs of cooling,” which puts financial markets “on edge,” said Tony Sycamore, market analyst at IG.
“But the big thing will be tonight, and I don’t think the boogeyman will be in the closet with tonight’s number.”
Nonfarm payrolls data is expected to show 200,000 jobs added in December, a slowdown from November’s pace of 263,000, according to a Reuters poll of economists.
Two-year US Treasury yields hit a more than two-month high of 4.497% overnight but fell to 4.460% in Tokyo. The 10-year yield, which reached 3.784% in New York, fell 3.726%.
The US currency remained strong against its major counterparts on Friday. The dollar index, which measures the greenback against six counterparts including the euro and the yen, changed slightly to 105.11 after jumping 0.91% overnight and hitting 105.27 on the first time since 8th December.
The dollar index rose 1.57% this week, ending a three-week losing streak. It is preparing to achieve its best performance since the end of September.
The greenback rose 0.27% to 133.755 yen, returning it to Thursday’s week-high 134.045.
The euro rose 0.09% to $1.05295 but remained near overnight lows of $1.0515, a level last seen on Dec. 12.
Crude oil rallied, extending Thursday’s gains after data showed lower fuel inventories. [O/R]
Brent crude oil futures rose 79 cents, or 1%, to $79.48 a barrel. US West Texas Intermediate crude oil futures rose 80 cents, or 1.1%, to $74.47 a barrel.