HK stocks set for strongest weekly performance in 4 months

Yen at two month high on increasing bets on rate walkings this year

Gold stable near record peak, oil set for 3rd weekly drop

By Ankur Banerjee

SINGAPORE, Feb 7 (Reuters) - Global stocks meandered on Friday ahead of crucial U.S. payrolls information as financiers thought about prospects that a wider trade war could be prevented, while the yen hit its greatest in nearly 2 months on increasing odds of more rate hikes in Japan this year.

In a week that started with U.S. President Donald Trump kicking off a trade war, investors have been hesitant in making major relocations as threatened responsibilities on China were carried out.

Beijing's measured tit-for-tat action has left space for negotiations, experts state, which has actually permitted traders to concentrate on the AI theme in China in the wake of home-grown start-up DeepSeek's advancement.

European futures pointed to a subdued open after the pan-European STOXX 600 index closed at a record high on Thursday on the back of robust business profits.

European stocks have actually staged their finest efficiency in a decade against in the very first six weeks of 2025, however focus is now on whether those gains can be sustained.

Eurostoxx 50 futures were down 0.41%, wiki.rrtn.org while FTSE futures fell 0.39%. DAX futures reduced 0.21%.

Futures for Nasdaq and S&P 500 were down about 0.2% as shares of Amazon slipped in extended trading overnight on weak point in the retailer's cloud computing system and soft forecast.

In Asia, Hong Kong's Hang Seng Index struck a three-month high, poised for genbecle.com a 4% rise in the week, forum.kepri.bawaslu.go.id its strongest weekly efficiency sustained by DeepSeek-led AI bets.

China's blue-chip stock index was 0.4% greater after touching a one-month high leaving MSCI's broadest index of Asia-Pacific shares outside Japan at its greatest because mid-December.

"Whilst there is considerable noise and uncertainty, we put on ´ t see intensifying trade tensions as a video game changer in the prospects for the Chinese market," said James Cook, investment director for emerging markets at Federated Hermes.

"China's bigger problem is not Trump however the domestic economy."

On the economic front, unemployed claims, layoffs and labour costs/productivity supplied a prologue to Friday's keenly awaited January work report, with the data most likely to reveal the impact of wild fires in California and cold weather throughout much of the country.

Nonfarm payrolls are expected to have actually increased by 170,000 jobs last month after surging 256,000 in December, a Reuters poll of economists revealed.

"Markets could deal with some volatility around the information if it beats expectations, however it won't change the path of the FOMC policy as more data will be required," said Anderson Alves, a trader with ActivTrades.

Markets are pricing in 43 basis points of relieving this year from the Fed with a rate cut in July fully priced in as policymakers remain in no hurry to begin the rate-cutting cycle again.

While political uncertainties kept financiers careful, worries have eased that Trump's approach to tariffs could intensify into a worldwide trade war.

RISING YEN

The Japanese yen has been on a tear this week buoyed by safe-haven circulations as well as increasing expectations of the Bank of Japan increasing rates of interest this year, with market value in 34 basis points of hikes for prazskypantheon.cz the year.

The yen touched 150.96 per dollar in early trading, its greatest level because December 10 but was last a little weaker at 151.71. The currency is headed for an over 2% rise against the dollar this week, its greatest weekly efficiency since late November.

Sterling was 0.1% lower at $1.24255 after dropping 0.5% on Thursday as the BoE cut interest rates by 25 basis points however cautioned it would be cautious going forward, in the face of a possible inflation uptick and geopolitical worries.

Oil costs increased partially on Friday but were on track for a 3rd straight week of decline.

Gold rates steadied on Friday near record-high levels and were headed for their sixth succeeding weekly gain driven by safe-haven circulations.

(Reporting by Ankur Banerjee; additional reporting by Stephen Culp, Marc Jones and elearnportal.science Alun John; modifying by Shri Navaratnam and Sam Holmes)