Australia

Australian shares are set to rise at the open, after Wall St finished the week higher despite labour-market strength.

ASX futures were up 0.2% or 16 point as of 8:30am on Monday, suggesting a higher open.

US markets ticked higher to end the week after closely watched jobs data came in slightly hotter than expectations.

US employers added 199,000 jobs in November, the Labor Department said, a slowdown from earlier in the year but more than economists expected. The unemployment rate slipped to 3.7%.

The S&P 500 closed 0.4% higher to post a weekly gain, its sixth straight. The Nasdaq and Dow Jones Industrial Average also added 0.4%. All three major indexes closed at their highest level of the year.

For traders, Friday's data added to optimism that the economy is gliding toward a soft landing. Stocks have rallied and bond yields have dropped since the beginning of November as investors have bet that the Federal Reserve will get inflation under control without causing a steep recession.

In commodity markets, Brent crude oil rose 2.4% to US$75.84 a barrel while gold was down 1.2% to US$2,004.67.

In local bond markets, the yield on Australian 2 Year government bonds was down at 3.99% while the 10 Year yield was also down at 4.29%. US Treasury notes edged higher, with the 2 Year yield at 4.72% and the 10 Year yield at 4.23%.

The Australian dollar was unchanged at 65.79 US cents. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 98.12.

Asia

Chinese shares closed mixed, with the benchmark Shanghai Composite Index edging 0.1% higher to 2969.56, ending the week below the key 3000 level. The Shenzhen Composite Index fell 0.1% to 1847.78, while the tech-heavy ChiNext Price Index gained 0.8%. Semiconductor stocks advanced. Cambricon Technologies Corp. and VeriSilicon Microelectronics Shanghai rose 7.4% and 6.0%, respectively. Meanwhile, the property sector led losses. Cinda Real Estate dropped 3.3%, while Beijing Urban Construction Investment & Development fell 3.1%.

Hong Kong shares closed lower, with the benchmark Hang Seng Index falling 0.1% to 16334.37. Investors are awaiting the U.S. jobs report due later today for clues on the Fed's rate outlook. Property stocks led losses, with the Hang Seng Mainland Properties dropping 2.2%. China Resources Land shed 4.6%, China Overseas Land & Investment fell 3.9% and Sunac China slid 19%. Consumer stocks also declined. Chow Tai Fook Jewellery Group was off 5.2%, Li Ning fell 3.4% and China Mengniu Dairy lost 2.3%. Meanwhile, Sunny Optical Technology led gains, rising 2.1%. Trip.com rose 1.8% after Singapore and China plan to ease visa-free travel arrangements. AIA Group added 1.9%.

The Nikkei Stock Average fell 1.7% to close at 32307.86, dragged by the yen's strength, which hurts overseas earnings of Japanese exporters when repatriated to Japan. Also, data released earlier today that showed the country's economy shrank at a faster pace than initially estimated in 3Q may have also weighed on the local stock market. USD/JPY was at 143.93, down sharply from 146.60 as of Thursday's Tokyo stock market close. Among the worst performers on the benchmark index, Toyota Industries slipped 5.4%, Toyota Tsusho dropped 4.9% and Ajinomoto was down 4.8%. The 10-year JGB yield was up 2bps at 0.770%.

Indian shares closed higher, with sentiment supported by the RBI raising its growth forecasts. The Indian central bank stood pat on the policy rate and raised its 2024 growth forecast for India to 7%, which have been supportive for market momentum, Thilan Wickramasinghem, said Maybank's head of Singapore research. He thinks the positive sentiment is likely to continue. The benchmark Sensex rose 0.4% to 69825.60. Bank and tech stocks led gains. HCL Technologies and Infosys rose 2.7% and 1.7%, respectively. HDFC Bank added 1.4%, Axis Bank advanced 1.2% and ICICI Bank was up 1.2%. Meanwhile, carmakers led losses. Mahindra & Mahindra dropped 1.5% and Tata Motors was down 1.0%.

Europe

European stocks built on earlier gains after U.S. job data came in stronger than expected. "US job growth exceeded market estimates, with 199,000 jobs added and the unemployment rate falling," Quilter Cheviot's head of fixed-interest research, Richard Carter, wrote. While job gains are easing compared to last year, they're holding up well amid tough economic conditions and slowing global growth, Carter said. "What this essentially does for the Federal Reserve is help to dampen down any talk of rate cuts in the first half of 2024," he said. The Stoxx Europe 600 rose 0.7%, the CAC 40 rallied 1.3% and the DAX climbed 0.8%.

The FTSE 100 closed Friday up 0.57%, reaching its highest level since October 19. The index was boosted by a rebound in oil prices from five-month lows, lifting the like of BP and Shell, while its second largest supermarket Sainsbury also had a solid session, bouncing to its highest price in almost two years after Goldman Sachs upgraded it to buy, CMC Markets UK chief market analyst Michael Hewson says in a research note. A decline in Anglo American did take some of the sheen off the index's gains, after the miner warned it plans to make production cuts next year in order to reduce costs and boost prices, Hewson says.

North America

Markets ticked higher to end the week after closely watched jobs data came in slightly hotter than expectations.

US employers added 199,000 jobs in November, the Labor Department said, a slowdown from earlier in the year but more than economists expected. The unemployment rate slipped to 3.7%.

The S&P 500 closed 0.4% higher to post a weekly gain, its sixth straight. The Nasdaq and Dow Jones Industrial Average also added 0.4%. All three major indexes closed at their highest level of the year.

For traders, Friday's data added to optimism that the economy is gliding toward a soft landing. Stocks have rallied and bond yields have dropped since the beginning of November as investors have bet that the Federal Reserve will get inflation under control without causing a steep recession.

"Investors should applaud the report as it suggests the Fed is delivering a goldilocks scenario of lower inflation without recession," said Ronald Temple, chief market strategist at Lazard.

Now, traders are pricing in rate cuts from the central bank next year, with the first coming as soon as March. Traders see a roughly 50% chance of a rate cut at the Fed's March meeting, according to the CME FedWatch Tool. Treasury yields rose after the jobs report, with the yield on the benchmark 10-year note hitting 4.244%, from 4.129% Thursday.

"With a labor market that is softening, the Fed can take a step closer to discussions about a policy shift," said Johan Grahn, head of exchange-traded fund strategy at Allianz Investment Management.

Grahn added that while the market is pricing in five rate cuts for next year, the Fed will need to see more evidence of a "soft landing with staying power" before doing so.

Adding to the good news, Americans were more upbeat about the economy this month and their expectations for inflation over the next 12 months dropped, according to a preliminary December reading of a University of Michigan survey.

Meanwhile, Lululemon reported better sales growth than Wall Street expected after the close on Thursday, sending the athleisure retailer's shares up 5.4% to a record.

Cryptocurrency exchange Coinbase Global's shares rose 7.7% to the highest level since April 2022. The exchange's shares have been rallying along with bitcoin, which is up sharply over the past month.

Paramount Global was the S&P 500's best performer Friday, soaring 12% after online entertainment news site Deadline reported that several investors are eyeing a takeover of the company.