Global stocks battle through worst week since March

MSCI’s broadest index of Asia-Pacific shares outside Japan had still lost 0.3% though, having earlier reached its lowest since mid-July 2017.

The Nikkei shed 0.8%, undermined by a rising yen and reports US President Donald Trump could be contemplating taking on Japan over trade.

On the jobs

Other emerging markets were trying to steady after a punishing week, with Indonesia and the Philippines still badly scarred by the fear of capital flight following crises in Argentina and Turkey and the rumbling US-China trade strains.

“It seems unlikely the tariffs will not implemented as the US administration believes that they are winning the trade war and will be in a stronger position to negotiate if they put more pressure on China,” JPMorgan analysts wrote in a note.

“The tech sector was also very weak overnight, with a slide in Micron of almost 10% and further weakness in the Chinese Internet ADRs.”

Eyes were also turning to the US payrolls report for August which is expected to show a robust rise of 191,000, in part as July was temporarily depressed by the closure of the Toys R Us chain that month.

Still, analysts at NatWest Markets cautioned that: “Despite employment indicators pointing to another strong report, it is worth noting that there is a tendency for August payrolls to initially disappoint and then be revised up noticeably later.”

Just as important will be figures on US wages where a rise above the 0.2% forecasted is likely to boost the dollar and pressure treasury prices.

The dollar could do with the lift, having lost out to the safe-haven yen and Swiss franc. It was changing hands at ¥110.70 after falling 0.7% on Thursday, the sharpest one-day loss in seven weeks.

Part of the decline came after a Wall Street Journal columnist reported that Trump had mused about starting a trade fight with Japan.

The dollar also hit a four-month low on the franc around $0.9645. Against a basket of currencies, the dollar index nudged lower to 94.939 and was heading for a fourth weekly drop.

The euro was a shade higher at $1.1645, while sterling idled at $1.2939 amid ongoing uncertainty over Brexit negotiations.

In commodity markets, the dip in the dollar left gold a sliver higher at $1,200.67/oz.

Crude oil was slightly up too after falling more than 1% on Thursday when US data showed petrol inventories rose unexpectedly last week.

Brent was 20 cents higher at $76.69 a barrel, while US crude edged up 23c to $67.99.

Reuters