Asian Shares Surge Ahead of US Jobs Data as Fed Waller Quiets Rate‑Hike Fears

Asian equities mirrored a stronger Wall Street, buoyed by expectations of a robust U.S. jobs report and a calming tone from Federal Reserve Governor Christopher Waller. The dollar slipped, sparking a 2.3 % rally in the yen – the best weekly gain since the July joint U.S./Japan intervention – and easing pressure on global bond markets.

European indices opened higher, with the pan‑region benchmark up 0.1 %. Nasdaq futures climbed 0.3 % while S&P 500 futures edged up 0.1 %. Waller’s remarks that recent data hint at disinflation and that he would likely hold rates steady at the upcoming policy meeting cut the market’s probability of a rate hike this month to roughly 50 % from about 63 % a day earlier.

JPMorgan analysts noted that Waller’s stance counters the argument that underlying inflation has fallen, suggesting that a rate increase would only materialise if Chair Warsh advocated for it.

In Asia, the MSCI All‑Asia ex‑Japan index rose 1.5 %, offsetting earlier losses, while the Nikkei gained 1.4 % but remained down 1.9 % for the week. Chinese blue‑chip stocks jumped 4 %, and South Korea’s KOSPI added 2 %. Software names led the rally, with Snowflake’s shares surging 16.6 % after a bullish forecast.

Traders are now focused on the U.S. payrolls release later today. Forecasts project an increase of 56,000 jobs for August, following a 23,000‑job decline the month before, and Waller indicated he does not expect the data to deviate significantly from the current trend of a stable labour market.