Home BusinessFinancial Sensex, Nifty Rise In Pre-Open; TCS, Tata Motors, Bajaj Finance, Sun Pharma In Focus

Sensex, Nifty Rise In Pre-Open; TCS, Tata Motors, Bajaj Finance, Sun Pharma In Focus

by Paul Morgan

Asian Shares Rise Ahead of Key U.S. Payrolls Report

Shares in Asia climbed on Friday as investors eagerly awaited the release of the monthly U.S. payrolls report. The data is expected to provide crucial insight into the Federal Reserve’s stance on interest rates, influencing market sentiment and investment decisions.

Equity benchmarks in Australia, Japan, South Korea, and Hong Kong all saw gains, reflecting growing optimism among investors. However, Chinese markets remained closed for a weeklong holiday, limiting overall market activity in the region.

In early Asian trading, futures contracts for the two U.S. benchmarks were relatively unchanged, suggesting cautiousness among investors ahead of the highly anticipated report. The S&P 500 and the Nasdaq 100 experienced slight declines on Thursday, although both indices were able to recover from their lows during the day.

The commodities market also displayed interesting dynamics, with Brent crude prices trading below $85 per barrel and WTI crude below the $83 mark. This reflects the ongoing concerns about global energy demand and supply dynamics. Additionally, the yield on the 10-year U.S. bond was trading at 4.73%, while Bitcoin continued to surge above the $27,000 level, emphasizing the ongoing interest in cryptocurrencies.

In India, the benchmark stock indices rebounded on Thursday after two consecutive days of losses. Advances in Larsen & Toubro Ltd. and ICICI Bank Ltd. helped lift market sentiment, while sectors such as media, information technology, and consumer durables also saw gains. However, public sector banks experienced a decline.

Unfortunately, foreign investors remained net sellers of Indian equities for the twelfth consecutive session on Thursday, reflecting ongoing uncertainties and concerns in the Indian market. Foreign portfolio investors sold stocks worth Rs 1,864.2 crore, while domestic institutional investors were net buyers, mopping up equities worth Rs 521.4 crore, according to provisional data from the National Stock Exchange.

Moreover, the local currency weakened slightly against the U.S. dollar, closing at Rs 83.26 on Thursday. This highlights the ongoing challenges faced by emerging market currencies due to factors such as rising inflation and global market uncertainties.

Overall, market participants are eagerly watching the U.S. payrolls report, which is expected to provide much-needed clarity on the Federal Reserve’s future monetary policy actions. The outcome of this report will likely shape market sentiment and investment strategies not only in Asia but globally as well.

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