Jan 10, (V7N) - Asian markets continued to decline on Friday as investors awaited the release of the U.S. non-farm payrolls report, which could heavily influence the Federal Reserve's stance on interest rates. Several Fed officials have signaled that interest rate cuts may be on hold for now due to persistent inflation and economic uncertainty.

Markets in Tokyo, Shanghai, Sydney, Singapore, Seoul, Taipei, Wellington, and Manila posted losses, while Hong Kong remained flat and Jakarta saw slight gains. The cautious start to 2025 reflects growing concerns over the Fed's more hawkish monetary policy and potential economic shifts under a possible Donald Trump presidency, particularly regarding tax cuts and tariffs that could reignite inflation.

Fed officials, including Boston Fed President Susan Collins and Fed Governor Michelle Bowman, emphasized a more cautious approach to rate cuts, with some even suggesting that rates might need to stay higher for longer if inflation persists.

Currency markets saw the pound edge up but remain under pressure due to concerns over the UK economy. Oil prices rose modestly, with West Texas Intermediate and Brent crude both up 0.4%.

Key Market Figures (as of 0230 GMT):

Tokyo (Nikkei 225): ↓ 0.5% at 39,411.76

Hong Kong (Hang Seng): Flat at 19,242.10

Shanghai (Composite): ↓ 0.2% at 3,205.49

Euro/Dollar: ↑ $1.0302

Pound/Dollar: ↑ $1.2307

Dollar/Yen: ↑ 158.19 yen

WTI Crude: ↑ 0.4% at $74.19/barrel

Brent Crude: ↑ 0.4% at $77.19/barrel

London FTSE 100: ↑ 0.8% at 8,319.69 (previous close)

With U.S. markets closed for a national day of mourning for former President Jimmy Carter, investors remain cautious amid economic and political uncertainty.

END/BUS/RH/