Asian Markets Decline as Traders Await US Jobs Data

by Faiz Riziq | Feb 7, 2025 | Ekonomi, Perniagaan & Korporat, Luar Negara, English & Other Country

Asian stocks headed for early declines Friday after muted moves on Wall Street as traders awaited US jobs data that will help illuminate the path ahead for interest rates. Shares in Australia and equity futures for Hong Kong and Japan fell, with the latter partly weighed by a stronger yen. The Japanese currency was steady Friday after four daily advances against the dollar to trade around the highest level since early December. Prime Minister Shigeru Ishiba will meet with US President Donald Trump on Friday.

The S&P 500 closed 0.4% higher, while the Nasdaq 100 added 0.5% on Thursday. Shares in Amazon.com Inc fell in after-hours trading following earnings results that showed projected profits for the current quarter below analysts’ estimates. The shortfall indicates the company continues to ramp up spending to support artificial intelligence services.

Treasuries were slightly lower across the curve Thursday. An index of the dollar tracked against a basket of currencies was little changed. The moves signal a dose of calm ahead of nonfarm payroll figures due later Friday that will refocus traders away from the drama over tariffs earlier in the week that initially rattled financial markets.

Friday’s jobs report is expected to show 175,000 new roles added to the US economy. A weak print could boost expectations for further Federal Reserve cuts, while a stronger-than-expected number may have the opposite effect.

Separate jobs data released Thursday showed initial jobless claims picked up while labor productivity remained robust. In addition to the employment print Friday, Wall Street will be closely watching a revision to job growth. Economists predict that will be substantial, but probably not as bad as initially estimated.

“Friday’s jobs report is important for markets because if it’s Goldilocks, it’s going to help support the market amidst all this tariff and policy noise,” said Tom Essaye at The Sevens Report. “However, if it’s not Goldilocks, it’s going to add another headwind on risk assets and likely pressure stocks.”

The British pound fell as the Bank of England lowered interest rates, with two officials supporting a 50-basis-point cut that prompted markets to boost bets on further easing. But the central bank also halved its growth forecast for this year to 0.75% and projected much stronger inflation than expected.

Elsewhere, Treasury Secretary Scott Bessent reiterated his view on a lower path for 10-year yields under the Trump administration. Bessent said there has been no “tinkering” with the Treasury department’s payment systems by Elon Musk’s government efficiency team and added that their work would lead to significant savings.

In Asia, data set for release includes outright bond purchases for the Bank of Japan, inflation for Taiwan and a rate decision in India. Consensus forecasts indicate the Reserve Bank of India will cut its benchmark repurchase rate 25 basis points to 6.25%, but some analysts say there is a chance the RBI could cut by twice that amount.

Revision Risk Every year, the January employment report from the Bureau of Labor Statistics comes with revisions for the 12 months through the previous March. Those adjustments traditionally don’t get much attention. But this week they will, because the agency’s preliminary estimate in August suggested the downward revision would be 818,000 — the largest since 2009.

Economists expect the actual markdown in the January report due Friday will probably come to around 600,000 to 700,000 jobs, which would be somewhat of a relief. The standard monthly jobs data is expected to show payrolls increased by 175,000 last month after advances in excess of 200,000 in the prior two months — which partly reflected recovery from two severe hurricanes.

For Fed officials, the expected outcome of the January jobs report and the benchmark revisions will likely be consistent with their view that labor demand is moderating, though still strong enough to underpin the economy.

“As long as Friday’s jobs report shows that the economy added 170,000-200,000 jobs during the month, the market should largely absorb this number with little volatility,” said Gaurav Mallik at Pallas Capital Advisors. “If we see a number much stronger than this, it could remove the prospects of any rate cuts this year, and if it’s a number much lower, it could raise worries about a weakening labor market.”

Fed Chair Jerome Powell said last week officials want to see more progress on inflation and would be looking for “serial readings” showing price pressures moving in the right direction.

For now, traders still see the Fed’s next move as a cut — although likely not until mid-year. Treasury yields hit 2025 lows this week.

In corporate news, Qualcomm Inc sank on fears demand for new handsets will stall. A bullish outlook lifted Peloton Interactive Inc. while Philip Morris International Inc. hit a record high on solid sales of Zyn nicotine pouches. Ford Motor Co sank amid a profit warning.

In commodities, gold was steady after retreating from a record high Thursday, its first decline in six sessions. Oil fell as Trump’s renewed pledge to drive down the price of crude overshadowed his push for tighter Iranian sanctions.

Malaysia & Uzbekistan Strengthen Business Ties: New Collaborations on the Horizon

by Faiz Riziq | Feb 6, 2025 | Ekonomi, Perniagaan & Korporat, Luar Negara, English & Other Country

Malaysian and Uzbek companies are being urged to explore new partnerships to unlock the vast economic potential between both nations, said Investment, Trade, and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. Speaking at the Malaysia-Uzbekistan Business Forum on Wednesday, he emphasized the importance of business-to-business (B2B) and government-to-business (G2B) collaborations, which are paving the way for strategic partnerships across multiple industries.

Major Agreements Signed Across Key Sectors

The forum saw the signing of several Memoranda of Understanding (MOUs) in high-impact industries such as:

• Electronics & Semiconductors
• Automotive Industry
• Hydropower & Solar Energy
• Chemical & Food Industries
• Pharmaceuticals

“These agreements will drive the growth of both our economies and industries,” said Tengku Zafrul, reinforcing the importance of Malaysia’s role as a global manufacturing and services hub. Also present at the event were Prime Minister Datuk Seri Anwar Ibrahim and Uzbekistan’s President Shavkat Mirziyoyev, highlighting the commitment of both governments to fostering stronger economic ties.

Malaysia’s SMEs: A Key Partner for Uzbekistan

Tengku Zafrul also underscored the significance of Malaysia’s small and medium enterprises (SMEs), calling them the backbone of the nation’s economy. With advanced capabilities in manufacturing, technology, agriculture, and logistics, Malaysian SMEs are well-positioned to integrate into Uzbekistan’s growing supply chains. “The resilience and adaptability of Malaysian SMEs make them reliable partners for Uzbek companies looking to expand their sourcing and distribution networks in the region,” he noted.

Uzbekistan’s Rapid Growth Presents Exciting Opportunities

Uzbekistan, one of the world’s youngest and fastest-growing economies, is on track to achieve a GDP growth rate of 5.5% to 5.8% over the next three years. With ongoing economic reforms and modernization efforts, the country is becoming an attractive investment destination.

Tengku Zafrul welcomed Uzbekistan’s strong interest in learning from Malaysia’s expertise and developing deeper industrial ties. “By leveraging each other’s strengths, both nations can accelerate economic progress and create long-term benefits for businesses and industries,” he added. As Malaysia and Uzbekistan move towards a new era of economic cooperation, businesses from both sides have an unprecedented opportunity to collaborate, innovate, and expand into new markets.