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Asian and European markets sank Monday after an outsized US jobs report dealt another blow to hopes for more interest rate cuts, while oil extended a rally sparked by new sanctions on Russia’s energy sector.The equity sell-off tracked hefty losses on Wall Street, where all three main indexes finished more than one percent lower as the new trading year continued to falter.Keenly awaited data on Friday showed the US economy created 256,000 jobs last month, a jump from November’s revised 212,000 and smashing forecasts of 150,000-160,000.The figures followed news that the crucial US services sector picked up in December, with the prices component soaring more than expected to the highest level since last January, while another report showed job openings hit a six-month high in November.Hopes that the Federal Reserve will continue cutting rates through 2025 — having made three trims last year — were dashed when in December it indicated just two reductions over the next 12 months, down from four tipped previously.The hawkish pivot came as inflation continues to hover above the bank’s two percent target, while there are also concerns that president-elect Donald Trump’s plans to slash taxes, regulations and immigration will reignite prices.”Given a resilient labour market, we now think the Fed cutting cycle is over,” said Bank of America’s Aditya Bhave and other economists.”Inflation is stuck above target: in the December (summary of economic projections), the Fed not only marked up its base case for 2025 significantly, but also indicated that inflation risks were skewed to the upside. Economic activity is robust. “We see little reason for additional easing.”Markets in Sydney, Singapore, Seoul, Mumbai, Taipei, Manila, Bangkok and Jakarta all sank. Tokyo was closed for a holiday.Hong Kong and Shanghai also fell but pared initial losses as data showed Chinese exports and imports topped forecasts in December.London, Paris and Frankfurt fell at the open.On currency markets the pound was wallowing around lows not seen since the end of 2023 owing to fading hopes for US rate cuts as well as worries about the British economy. The euro struggled at its weakest since November 2022.Surging oil prices added to unease, with both main contracts jumping more than percent — extending Friday’s gains of more than three percent — after the United States and Britain announced new sanctions against Russia’s energy sector, including oil giant Gazprom Neft.However, commentators do not expect prices to spike too much, even amid speculation that Trump will hit Iran with fresh sanctions.”A significant and perhaps underpriced risk to crude oil prices is the potential for supply to outstrip demand, especially given OPEC+’s intention to reintroduce barrels to the market,” said Stephen Innes at SPI Asset Management.”Even if US sanctions curtail Iranian oil production by 1.5 million barrels a day — a scenario similar to that during Trump’s previous presidency — this amount could easily be compensated by OPEC+, which is currently holding back 5.8 million barrels a day, or 5.3 percent of the total global production capacity.”However, he added that some issues could lead crude to rocket, including an escalation of the Middle East crisis, a significant reduction in Russian output or exports and a strategic about-face by OPEC+ to slash production.- Key figures around 0815 GMT -Hong Kong – Hang Seng Index: DOWN 1.0 percent at 18,874.14Shanghai – Composite: DOWN 0.3 percent at 3,160.76 (close)London – FTSE 100: DOWN 0.3 percent at 8,224.50Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.0216 from $1.0244 on FridayPound/dollar: DOWN at $1.2140 from $1.2210Dollar/yen: DOWN at 157.39 yen from 157.74 yenEuro/pound: UP at 84.17 pence from 83.90 penceWest Texas Intermediate: UP 1.5 percent at $77.75 per barrelBrent North Sea Crude: UP 1.4 percent at $80.86 per barrelNew York – Dow: DOWN 1.6 percent at 41,938.45 (close)

China’s exports surged to a record high in 2024, providing a much-needed boost for the economy as the prospect of biting tariffs imposed by US president-elect Donald Trump looms.Overseas shipments represented a rare bright spot for Beijing last year as sluggish domestic consumption and a prolonged crisis in the property sector dragged on growth.But Trump, who imposed sweeping tariffs on China during his first term in office, has threatened even heftier levies when he returns to the White House next week.Observers said that a recent surge in China’s exports has likely been boosted by companies ramping up stockpiles ahead of Trump’s second term amid fears of a painful trade war.”In 2024, China’s total exports exceeded 25 trillion yuan for the first time, reaching 25.45 trillion yuan ($3.47 trillion), an increase of 7.1 percent year-on-year,” Lu Daliang, spokesman for the General Administration of Customs, said at a news conference.Total imports, meanwhile, rose 2.3 percent to 18.39 trillion yuan, Lu said.Combined trade swelled five percent to reach a record 43.85 trillion yuan, said Wang Lingjun, vice minister of the customs administration.”China’s position as the world’s largest goods trading nation has become even more secure,” Wang added.Official customs data showed Monday that exports in December jumped 10.7 percent year-on-year, comfortably outperforming a forecast of 7.5 percent in a Bloomberg survey of economists.”We expect shipments to remain strong in the coming months, as US importers continue to stockpile Chinese goods ahead of tariff hikes,” Zichun Huang, China economist at Capital Economics, wrote in a note.”But exports are likely to weaken later this year as President Trump puts his tariff threats into action,” she added.Imports last month grew one percent year-on-year, customs data showed, compared with a Bloomberg forecast of a one percent decline.- ‘Resilient’ -Exports have historically represented a key driver of activity for the world’s number two economy, which officials say is likely to have grown five percent last year.During the most recent US presidential campaign, Trump threatened to slap a 60 percent tariff on all Chinese goods.China’s exports “are likely to stay resilient in the near-term”, wrote Huang.”But outbound shipments will weaken later this year if Trump follows through,” she wrote, adding that the new US tariffs “could reduce export volumes by about three percent and shave roughly 0.5 percent off China’s GDP.”Since September, Beijing has announced some of its most aggressive policy measures in years as officials try to kickstart the economy, which has so far failed to achieve a full post-pandemic recovery.The steps have included the cancellation of certain restrictions on homebuying, subsidies for the purchasing of household items and key interest rate cuts.Exports have historically represented a key driver of activity for the world’s number two economy, which officials say is likely to have grown five percent last year.”With the help of strong exports and macro policy easing, the economic momentum likely stabilised,” wrote Zhiwei Zhang, chief economist at Pinpoint Asset Management, in a note Monday following the publication of the trade figures.The government is due to release 2024 economic growth data later this week. President Xi Jinping has recently expressed confidence that the country achieved an official target of around five percent.Many economists say more policy support targeted at incentivising domestic consumption is needed to restore China’s economic health.The country narrowly avoided a slip into deflation in December, official figures showed last week, suggesting that recent measures have not yet produced a robust rebound in domestic spending.Low inflation may lead to an increase of real interest rates, said Yue Su, principal economist at the Economist Intelligence Unit. “So monetary easing policy needs to be more proactive to really reduce the borrowing cost of enterprises, which is important for a broad recovery of the economy,” she told AFP.The International Monetary Fund has previously predicted China’s economy would grow 4.8 percent in 2024 before slowing to 4.5 percent this year.

Japanese Prime Minister Shigeru Ishiba told US President Joe Biden that his blocking of Nippon Steel’s takeover of US Steel raised “strong” concerns in both countries, local media reported Monday.The comments came in a three-way call with the president of the Philippines that according to the White House also touched on China’s “dangerous and unlawful” behaviour in the region.Citing national security concerns, Biden nixed Nippon Steel’s $14.9 billion acquisition of US Steel earlier this month, irking close ally Japan where the United States has some 54,000 military personnel.”I said that strong voices of concerns are being raised not just in Japan but also in the US business community, and I urged (Biden) to dispel these feelings,” Ishiba told reporters after the call on Monday.Blocking a takeover by a Japanese firm is highly unusual and both firms have launched legal action, accusing the outgoing US president of “illegal interference”.Nippon Steel had touted the acquisition as a lifeline for its struggling US rival, but opponents warned the Japanese group would slash jobs despite its assurances to the contrary.The takeover, which was announced in 2023, came in the run-up to last year’s US presidential election and proved a political flashpoint.US Steel is based in the swing state of Pennsylvania and both Donald Trump and Kamala Harris opposed the transaction.- ‘Big picture’ -Japanese firms invested almost $800 billion in the United States in 2023, more than any other country, and 14.3 percent of the total, according to official US data.US firms are also the biggest outside investors in Japan.Japan is also a close strategic ally for Washington as it seeks to counter China asserting its presence in contested areas of the South China Sea.Both steel companies said Sunday that US authorities have extended the deadline for unwinding the acquisition until June 18.Japan’s Foreign Minister Takeshi Iwaya, who will attend Trump’s inauguration as US president on January 20, said it was important not to undermine the “big picture” of bilateral ties.Iwaya also said that while in Washington he would seek talks with Marco Rubio, slated to be Trump’s Secretary of State, and to lay the groundwork for a meeting between Ishiba and Trump.Kyodo News cited government sources as saying that this could take place before mid-February.During Trump’s first term, he and Japan’s then-prime minister Shinzo Abe, enjoyed warm relations. In December, Trump met Abe’s widow at Mar-a-Lago.- US allies -In recent years, with an eye on China, Washington has sought to improve strategic relations with both Japan and the Philippines as well as with South Korea. Biden, Philippines President Ferdinand Marcos and with Ishiba’s predecessor Fumio Kishida held talks at the White House last April.In another first, in 2023 Biden hosted Kishida and South Korean President Yoon Suk Yeol — who briefly imposed martial law last month — at Camp David.Last year the Philippines ratified a key defence pact with Japan, which allows them to deploy troops on each other’s soil. On Monday Biden, Marcos and Ishiba “discussed trilateral maritime security and economic cooperation, as well as the People’s Republic of China’s dangerous and unlawful behaviour in the South China Sea,” the White House said.”The three Leaders agreed on the importance of continued coordination to advance a free and open Indo-Pacific,” said a statement, which made no mention of the steel deal.Marcos’s office said that the call was to “reaffirm their commitment to strengthening cooperation in areas such as economic growth, emerging technologies, climate action, clean energy and regional security”.Biden also “highlighted the ‘historic progress’ made, particularly in maritime security, economic security and technological collaboration” between the three countries, the Philippines statement said.

Asian markets tumbled Monday after an outsized US jobs report dealt another blow to hopes for more interest rate cuts, while oil extended a rally sparked by new sanctions on Russia’s energy sector.The equity sell-off tracked hefty losses on Wall Street, where all three main indexes finished more than one percent lower as the new trading year continued to falter.Keenly awaited data on Friday showed the US economy created 256,000 jobs last month, a jump from November’s revised 212,000 and smashing forecasts of 150,000-160,000.The figures followed news that the crucial US services sector picked up in December, with the prices component soaring more than expected to the highest level since last January, while another report showed job openings hit a six-month high in November.Hopes that the Federal Reserve will continue cutting rates through 2025 — having made three last year — were dashed when in December it indicated just two reductions over the next 12 months, down from four tipped previously.The hawkish pivot came as inflation continues to hover above the bank’s two percent target, while there are also concerns that president-elect Donald Trump’s plans to slash taxes, regulations and immigration will reignite prices.”Given a resilient labour market, we now think the Fed cutting cycle is over,” said Bank of America’s Aditya Bhave and other economists.”Inflation is stuck above target: in the December (summary of economic projections), the Fed not only marked up its base case for 2025 significantly, but also indicated that inflation risks were skewed to the upside. Economic activity is robust. “We see little reason for additional easing.”Equities fell across Asia, with Hong Kong, Taipei and Manila off more than one percent each, while Shanghai, Sydney, Singapore, Seoul and Jakarta were also well down. Tokyo was closed for a holiday.Surging oil prices added to unease, with both main contracts jumping around two percent — extending Friday’s gains of more than three percent — after the United States and Britain announced new sanctions against Russia’s energy sector, including oil giant Gazprom Neft.However, commentators do not expect prices to spike too much, even amid speculation that Trump will hit Iran with fresh sanctions.”A significant and perhaps underpriced risk to crude oil prices is the potential for supply to outstrip demand, especially given OPEC+’s intention to reintroduce barrels to the market,” said Stephen Innes at SPI Asset Management.”Even if US sanctions curtail Iranian oil production by 1.5 million barrels a day — a scenario similar to that during Trump’s previous presidency — this amount could easily be compensated by OPEC+, which is currently holding back 5.8 million barrels a day, or 5.3 percent of the total global production capacity.”However, he added that some issues could lead crude to rocket, including an escalation of the Middle East crisis, a significant reduction in Russian output or exports and a strategic about-face by OPEC+ to slash production.- Key figures around 0230 GMT -Hong Kong – Hang Seng Index: DOWN 1.6 percent at 18,765.65Shanghai – Composite: DOWN 0.3 percent at 3,157.92Tokyo – Nikkei 225: Closed for a holidayEuro/dollar: DOWN at $1.0241 from $1.0244 on FridayPound/dollar: DOWN at $1.2186 from $1.2210Dollar/yen: DOWN at 157.63 yen from 157.74 yenEuro/pound: UP at 84.04 pence from 83.90 penceWest Texas Intermediate: UP 2.0 percent at $78.06 per barrelBrent North Sea Crude: UP 1.8 percent at $81.17 per barrelNew York – Dow: DOWN 1.6 percent at 41,938.45 (close)London – FTSE 100: DOWN 0.9 percent at 8,248.49 (close)

British treasurer Rachel Reeves said Saturday that London was a “natural home” for Chinese finance during a visit to Beijing in the shadow of bond market turmoil back home.Reeves, whose formal title is chancellor of the exchequer, is the most senior British government official to visit China since then-prime minister Theresa May held talks with President Xi Jinping seven years ago.The trip comes as the yield on British government bonds reached a 17-year high this week, further complicating the ruling Labour Party’s sputtering efforts to revitalise growth.The increase makes it more costly for the government to finance current operations and repay debt, raising risks it will have to make spending cuts or hike taxes.Speaking at the reopening of long-suspended finance talks between the two countries, Reeves said London was a “natural home for China’s financial services firms and your clients raising capital, and a launchpad for Chinese firms seeking to build a global footprint”.She hailed “opportunities to deepen connections” on capital markets, but said both countries needed to work more closely on “regulatory cooperation”.At a later press briefing, Reeves said “common ground” had been found on financial services, trade, investment, climate change and other areas.She said the total value of what had been agreed would be worth £600 million ($732 million) for the British economy over the next five years, without giving specific details.Her Chinese counterpart, Vice Premier He Lifeng, said experience showed that “as long as China and the UK respect each other… relations between our two countries can develop in a healthy way”.Reeves faced pressure from the parliamentary opposition to stay home and address the financial crisis, but a spokesperson for Prime Minister Keir Starmer said this week she had not planned to cancel her “long-standing” trip.On a visit to British bicycle-maker Brompton’s Beijing showroom earlier Saturday, Reeves acknowledged “moves in global financial markets over the last few days”, but said the fiscal rules she set out in her October budget were “non-negotiable”.”Growth is the number one mission of this government, to make our country better off,” she said, adding that her visit would “unlock tangible benefits for British businesses”.The governor of the Bank of England and the chief executive of the UK’s Financial Conduct Authority also took part in the visit.- Fine balance -Starmer has sought to reset the UK’s diplomatic relationship with China, balancing opportunities for trade and cooperation with the need to challenge Beijing on areas like human rights and the war in Ukraine.In November, Starmer became the first British prime minister to meet Xi since 2018, when the pair spoke at the G20 summit in Brazil.But trust is fragile following claims that a Chinese businessman used his links with Britain’s Prince Andrew to spy for the Communist Party, an allegation Beijing has dismissed as “preposterous”.Reeves said Saturday that it was “important that we can have open and frank exchange” on issues where London and Beijing disagreed, including concerns around national security, market access and the impacts of subsidies and industrial policy.Other points of contention, she said, were “Russia’s illegal war in Ukraine… and Hong Kong, where we have concerns on rights and freedoms, but where we also have shared interests”.In response, He repeated China’s long-standing position that it is “neither a creator of the Ukraine crisis, nor a direct party” to the conflict.He added that “Hong Kong can become a bridge to closer cooperation between our two sides”.China is a long-time ally of Russia and has refused to condemn its invasion of Ukraine despite criticism from Western governments that Beijing is giving Moscow political and economic support to wage a war of aggression.Relations between the UK and China plummeted in 2020 after Beijing imposed a sweeping national security law on Hong Kong which severely curtailed freedoms in the former British colony.

The black boxes holding the flight data and cockpit voice recorders for the crashed Jeju Air flight that left 179 people dead stopped recording four minutes before the disaster, South Korea’s transport ministry said Saturday.The Boeing 737-800 was flying from Thailand to Muan, South Korea, on December 29 carrying 181 passengers and crew when it belly-landed at the Muan airport and exploded in a fireball after slamming into a concrete barrier.It was the worst-ever aviation disaster on South Korean soil.”The analysis revealed that both the CVR and FDR data were not recorded during the four minutes leading up to the aircraft’s collision with the localiser,” the transport ministry said in a statement, referring to the two recording devices.The localiser is a barrier at the end of the runway that helps with aircraft landings and was blamed for exacerbating the crash’s severity.The damaged flight data recorder had been deemed unrecoverable for data extraction by South Korean authorities, who sent it to the United States for analysis at the US National Transportation Safety Board laboratory.But it appears that the boxes holding clues to the flight’s final moments experienced data loss, leaving authorities trying to find out what happened.”Plans are in place to investigate the cause of the data loss during the ongoing accident investigation,” the ministry said.South Korean and US investigators are still probing the cause of the crash, which prompted a national outpouring of mourning with memorials set up across the country.- ‘Committed’ -Investigators said the boxes were crucial to their probe but added they would not give up on trying to find out why the crash happened.”The investigation will be conducted through the examination and analysis of various data. The Committee is committed to doing its best to accurately determine the cause of the accident,” the ministry said.Investigators have pointed to a bird strike, faulty landing gear and the runway barrier as possible issues.The pilot warned of a bird strike before pulling out of a first landing, then crashed on a second attempt when the landing gear did not emerge.This week, lead investigator Lee Seung-yeol told reporters that “feathers were found” in one of the plane’s recovered engines, but cautioned a bird strike does not lead to an immediate engine failure.Authorities have raided offices at Muan airport where the crash took place, a regional aviation office in the southwestern city, and Jeju Air’s office in the capital Seoul.They also barred Jeju Air’s chief executive from leaving the country. Rival parties later formed a joint task force to probe the crash, while Transport Minister Park Sang-woo offered his resignation this week.”As the minister responsible for aviation safety, I feel a heavy sense of responsibility regarding this tragedy,” he said.

Wall Street stocks slumped and the dollar climbed on Friday as a robust US jobs report dimmed hopes of further interest rate cuts.Oil prices, meanwhile, briefly jumped past $80 per barrel on new US sanctions on Russia, further disrupting its crude exports and therefore tightening supplies.The world’s biggest economy added 256,000 jobs last month, up from a revised 212,000 in November, said the Labor Department.The figure smashed market expectations of between 150,000 and 160,000 jobs.Traders say a strong US economy, as evidenced by the jobs data, means there is less likelihood of further Federal Reserve rate cuts — which have caused bond yields and the dollar to climb and stocks to move lower.”Sentiment has soured on equity markets and the bond market strop out is showing signs of intensifying,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Briefing.com analyst Patrick O’Hare said: “The key takeaway from the report for the market is that it was perhaps too good.”The Fed indicated last month that it would cut rates just twice this year — down from the four previously flagged — due to sticky inflation.That came amid concerns that incoming president Donald Trump’s plans to slash taxes, regulations and immigration — and to impose harsh tariffs on imports — would reignite price increases.O’Hare said the strong jobs report suggests “the Fed may have made a mistake cutting rates as aggressively as it did at the end of 2024”.Hargreaves Lansdown’s Streeter said: “Hopes for multiple rate cuts from the Fed… have fizzled out.”Market expectations of the next rate cut have shifted to later in the year.”The market may not love this jobs number but there are a lot worse things than a strong labour market,” said US investment analyst Bret Kenwell at eToro trading platform.A strong jobs market is needed to keep consumers spending, which is the motor of the US economy, he noted.”Investors need to keep that in mind — even if that means rate-cut expectations take a step back,” Kenwell added.- Bond pressure -The yield on US government bonds jumped following the jobs report.Across the Atlantic, UK 10-year bond yields remained high after surging to their highest level since the 2008 global financial crisis, amid talk the government may have to make spending cuts or hike taxes to help repay state debt.The pound remained under pressure after hitting levels against the dollar on Thursday not seen since late 2023.”The global bond selloff showed few signs of letting up… with long-term borrowing costs continuing to move higher,” noted Jim Reid, managing director at Deutsche Bank. “Even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he added.European markets closed lower.In Asia, the Tokyo, Hong Kong and Shanghai stock markets also closed lower on Friday.- Key figures around 2125 GMT -New York – Dow: DOWN 1.6 percent at 41,938.45 points (close)New York – S&P 500: DOWN 1.5 percent at 5,827.04 (close)New York – Nasdaq Composite: DOWN 1.6 percent at 19,161.62 (close) London – FTSE 100: DOWN 0.9 percent at 8,248.49 (close)Paris – CAC 40: DOWN 0.8 percent at 7,431.04 (close)Frankfurt – DAX: DOWN 0.5 percent at 20,214.79 (close)Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)Euro/dollar: DOWN at $1.0244 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2210 from $1.2293Dollar/yen: DOWN at 157.74 yen from 157.96 yenEuro/pound: UP at 83.90 pence from 83.75 penceBrent North Sea Crude: UP 3.7 percent at $79.76 per barrelWest Texas Intermediate: UP 3.6 percent at $76.57 per barrelburs-rl/gil/bys/des

Stock markets mostly retreated and the dollar steadied Friday as traders awaited key US jobs data for signals on the health of the world’s largest economy and the outlook for interest rates.Oil prices jumped around 2.5 percent as analysts expect the United States to soon announce more sanctions against Russia, further disrupting its crude exports and therefore tightening supplies.Tokyo, Hong Kong and Shanghai stock markets closed lower Friday. London dropped nearing the halfway stage while in the eurozone, Frankfurt and Paris gained. The pound remained under pressure after Thursday hitting levels not seen since late 2023 against the dollar on worries about the UK economy.UK 10-year bond yields remained high after surging to their highest level since the 2008 global financial crisis, amid talk the government may have to make spending cuts or hike taxes to help repay state debt.”The global bond selloff showed few signs of letting up… with long-term borrowing costs continuing to move higher,” noted Jim Reid, managing director at Deutsche Bank. “Even though the UK might appear the most striking in terms of when yields last traded at these levels, other countries have experienced a similar pattern too,” he added.Friday’s US non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.”Markets will be watching closely for any signs of inflationary pressures building with the wage growth figure followed closely,” said Joshua Mahony, chief market analyst at financial services firm Scope Markets. The Fed indicated last month it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Donald Trump’s plans to slash taxes, regulations and immigration — and to impose harsh tariffs on imports — on re-entering the White House would reignite prices.On the corporate front, shares in French video game giant Ubisoft shed around six percent on the Paris stock exchange, after the company said it was exploring its options following another delay in its “Assassin’s Creed” franchise. Uniqlo owner Fast Retailing also struggled, with shares sliding in Tokyo after the company reported a weak quarterly performance in China.- Key figures around 1100 GMT -London – FTSE 100: DOWN 0.2 percent at 8,299.70Paris – CAC 40: UP 0.2 percent at 7,506.93Frankfurt – DAX: UP 0.2 percent at 20,362.05Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)New York – Dow: closed on ThursdayEuro/dollar: UP at $1.0303 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2292 from $1.2293Dollar/yen: UP at 158.11 yen from 157.96 yenEuro/pound: UP at 83.81 pence from 83.75 penceBrent North Sea Crude: UP 2.5 percent at $78.87 per barrelWest Texas Intermediate: UP 2.6 percent at $75.82 per barrel

Equities fell Friday as traders prepared for the release of US jobs data that could play a key role in the Federal Reserve’s decision-making on interest rates, with several officials indicating the cutting has finished for now.Markets have started the year cautiously, with the optimism that characterised most of the past three months dented by concerns about Donald Trump’s coming presidency and the US central bank’s hawkish pivot on monetary policy.With Wall Street closed for a national day of mourning for late former president Jimmy Carter, there were few major catalysts to drive business at the end of a broadly dour week in Asia.Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington, Bangkok and Manila fell, while Mumbai and Jakarta edged up.London dipped at the open, while Frankfurt and Paris were flat.Friday’s non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.Still, the Fed indicated last month it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Trump’s plans to slash taxes, regulations and immigration, and impose harsh tariffs on imports, would reignite prices.And several Fed officials have since lined up to warn they would be keen to take it easy on easing policy this year.Boston Fed president Susan Collins said “considerable uncertainty” meant a slower pace of reduction would be warranted, adding that borrowing costs were in the right place for now and could be held for longer “if there is little further progress on inflation”.And Fed Governor Michelle Bowman acknowledged that while she backed last month’s reduction, she could have been persuaded against it. “Given the lack of continued progress on lowering inflation and the ongoing strength in economic activity and in the labour market, I could have supported taking no action at the December meeting,” she said.Kansas City boss Jeff Schmid said policy could already be at its ideal zone, while his Philadelphia counterpart Patrick Harker wanted to base his decision on incoming data.Regan Capital chief investment officer Skyler Weinand said the Fed was “worried about the incoming administration”.He told Bloomberg Television that the growing US fiscal deficit and healthy consumer spending could result in “higher interest rates for the next five to 10 years”.On currency markets, the pound remained under pressure after Thursday saw it hit levels not seen since late 2023, although it remains under pressure on worries about the UK economy amid talk the government might have to make spending cuts or hike taxes.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 1.1 percent at 39,190.40 (close)Hong Kong – Hang Seng Index: DOWN 0.9 percent at 19,064.29 (close)Shanghai – Composite: DOWN 1.3 percent at 3,168.52 (close)London – FTSE 100: DOWN 0.1 percent at 8,308.15Euro/dollar: DOWN at $1.0292 from $1.0296 on ThursdayPound/dollar: DOWN at $1.2289 from $1.2293Dollar/yen: UP at 158.42 yen from 157.96 yenEuro/pound: UP at 83.78 pence from 83.75 penceWest Texas Intermediate: UP 0.9 percent at $74.59 per barrelBrent North Sea Crude: UP 0.9 percent at $77.62 per barrelNew York – Dow: closed

Equities fell again in Asia on Friday as traders prepared for the release of US jobs data that could play a key role in the Federal Reserve’s decision-making on interest rate, with several officials indicating the cutting has finished for now.Markets have started the year cautiously, with the optimism that characterised most of the past three months dented by concerns about Donald Trump’s presidency and the US central bank’s hawkish pivot on monetary policy.With Wall Street closed for a national day of mourning for late former president Jimmy Carter, there were few major catalysts to drive business at the end of a broadly dour week in Asia.Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington and Manila fell, while Hong Kong barely moved and Jakarta cautiously edged up.Friday’s non-farm payrolls report is expected to show a slowdown in jobs creation in December, though still at a healthy enough pace to suggest the labour market remains in rude health.Still, the Fed last month indicated it will cut rates just twice this year — down from the four previously flagged — owing to sticky inflation.That came as speculation began swirling that Trump’s plans to slash taxes, regulations and immigration, and impose harsh tariffs on imports would reignite prices.And several Fed officials have since lined up to warn they would be keen to take it easy on easing policy this year.Boston Fed president Susan Collins said “considerable uncertainty” meant a slower pace of reduction would be warranted, adding that borrowing costs were in the right place for now and could be held for longer “if there is little further progress on inflation”.And Fed Governor Michelle Bowman admitted that while she backed last month’s reduction, she could have been persuaded against it. “Given the lack of continued progress on lowering inflation and the ongoing strength in economic activity and in the labour market, I could have supported taking no action at the December meeting,” she said. Meanwhile, Kansas City boss Jeff Schmid said policy could already be at its ideal zone, while his Philadelphia counterpart Patrick Harker wanted to base his decision on incoming data.Regan Capital chief investment officer Skyler Weinand said the Fed was “worried about the incoming administration”.He told Bloomberg Television that the growing US fiscal deficit and healthy consumer spending could result in “higher interest rates for the next five to 10 years”.On currency markets the pound edged up from Thursday, when it hit levels not seen since late 2023, though it remains under pressure on worries about the UK economy amid talk the government might have to make spending cuts or hike taxes.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 0.5 percent at 39,411.76 (break)Hong Kong – Hang Seng Index: FLAT at 19,242.10Shanghai – Composite: DOWN 0.2 percent at 3,205.49Euro/dollar: UP at $1.0302 from $1.0296 on ThursdayPound/dollar: UP at $1.2307 from $1.2293Dollar/yen: UP at 158.19 yen from 157.96 yenEuro/pound: DOWN at 83.71 pence from 83.75 penceWest Texas Intermediate: UP 0.4 percent at $74.19 per barrelBrent North Sea Crude: UP 0.4 percent at $77.19 per barrelNew York – Dow: Closed London – FTSE 100: UP 0.8 percent at 8,319.69 points (close)