Asian Stock Market: Trades mixed as firmer stock futures battle inflation, NFP concerns

• Asian equities trade mixed as upbeat stock futures fail to reject bears amid hawkish central bank actions, inflation fears.
• ECB, BOE roiled equities before Amazon recalled buyers.
• Eight-year high oil prices join pre-NFP caution to test the bulls amid absence of China.
• RBA SoMP fails to propel Aussie equities, Japan’s Nikkei struggle to keep recent gains.

Asia-Pacific traders struggle to foot amid early Friday, despite firmer stock futures, as markets await US Nonfarm Payrolls (NFP).

Thursday’s hawkish central bank actions magnified inflation concerns and drowned Wall Street, as well as equities in Europe and the UK. However, the Amazon earnings beat lifted US stock futures and triggered a relief rally afterward. Even so, the pre-NFP caution and absence of major data/events during Asia kept the risk appetite weaker.

While portraying the mood, the MSCI’s index of Asia-Pacific shares ex-Japan copies S&P 500 Futures with 1.20% intraday gains. On the same line was Japan’s Nikkei 225, up 0.70% heading into Friday’s European session. It’s worth noting that Japan’s Finance Minister (FinMin) Shunichi Suzuki warned over the nation’s fiscal position while BOJ Governor raised concerns over inflation and helped the bulls to keep reins.

Elsewhere, Hong Kong’s Hang Seng marked a positive start to the trading week after the Lunar New Year holidays whereas equities in Australia and New Zealand remain downbeat amid inflation fears. That said, the Reserve Bank of Australia’s (RBA) quarterly Statement of Monetary Policy (SoMP) repeated the recent communication from Australia’s central bank, firstly via Rate Statement and then by Governor Philip Lowe, while rejecting the need for immediate rate hikes even as the inflation figures are strong.

Moving on, India’s BSE Sensex struggle for clear direction as heavyweights print losses whereas South Korea’s KOSPI remains on the positive side after printing the biggest daily jump in a year.

On a broader front, the US 10-year Treasury yields rose 1.8 basis points (bps) to 1.845%, bracing for the first weekly gain in three while S&P 500 Futures rise 1.14% around 4,520. Further, the WTI crude oil prices refresh eight-year high while inching closer to the $90.00 levels at the latest.

Looking forward, US Nonfarm Payrolls (NFP), expected 150K versus 199K prior, will be crucial to watch for further market direction.

Read: US Treasury bond yields stay firmer, stock futures gain too ahead of NFP