Asian shares fall after wild swings in bonds, FX before US jobs data

Business Recorder reported that Asian shares fell on Friday as investors reacted to sharp moves in bond and currency markets ahead of the US nonfarm payrolls release later in the day. Crude remained firm after reports of additional US troops and carriers heading to the Middle East, and China's decision to pause oil product shipments abroad added to fuel supply fears.

Yields on the 10-year US Treasury note reached 5.34%, their highest since 2002, after posting the sharpest quarterly increase in 32 years before easing to 5.2512% in Asian trade. Fiscal concerns in France pushed the spread over German bonds above 140 basis points, the widest since 2012, which unsettled European equities and pushed the euro down to $1.1215, its lowest since May 2025.

Regional shares were also weaker, with the MSCI gauge excluding Japan down 0.5% and on course for a weekly drop of 1.7%, while Japan's Nikkei slipped 0.7% yet was set for a 3.1% weekly gain. Chinese mainland exchanges are closed for a holiday through Wednesday of next week. Investors are focused on the September payrolls report, with forecasts centred on 90,000 new jobs and an unchanged 4.1% employment rate, while Pepperstone's Chris Weston said a strong wages figure could carry weight for US rates.