Asia Stocks Swing Before US Jobs, Dollar Edges Back

HONG KONG,(UrduPoint / Pakistan Point News -2nd Sep,2016) - Asian investors trod warily ahead of a crucial US jobs report Friday while the Dollar edged back against its major rivals after a surprise slump in the country's factory activity.

After this week's rally in the greenback following Federal Reserve boss Janet Yellen's upbeat assessment of the US economy and hint at a possible interest rate hike, the unit tumbled Thursday as the closely watched ISM manufacturing gauge hit an eight-month low.

The news threw a spanner in the works a day before the release of non-farm payrolls figures that are largely seen as a barometer of if and when the central bank will move on rates.

"There is potential for markets to whipsaw should we see robust US jobs data tonight," Sharon Zollner, a senior economist in Auckland at ANZ Bank New Zealand, said in a client note, according to Bloomberg News.

"A stronger US labour market isn't new news for the Fed or its watchers, rather, it is areas such as manufacturing and retail that are currently causing concern, not to mention a generalised lack of inflation. But nonetheless, payrolls data is traditionally a big market mover, so buckle up."