Asian Stocks Decline Due to Tech Sector Retreat, Anticipating Payrolls Report

Market Overview

• Asian Shares Decline: Asian markets opened the new month lower, influenced by a U.S. court ruling that complicates tariff policies and investor anticipation of U.S. job data that could impact interest rate decisions.
• U.S. Market Activity: Despite a holiday in the U.S. leading to thin trading conditions, Wall Street and European futures showed slight gains after a decline on Friday.

Economic Indicators

• Upcoming Job Data: The U.S. job report for August is expected to show an increase of 75,000 jobs, with estimates ranging from zero to 110,000. The unemployment rate is projected to rise to 4.3%.
• Federal Reserve Rate Cuts: A job report that meets or falls short of expectations could solidify market predictions for a Federal Reserve rate cut on September 17, with futures indicating a nearly 90% probability.

Trade and Tariff Developments

• Court Ruling on Tariffs: A U.S. Court of Appeals deemed many of President Trump's tariffs illegal, although they remain in effect pending a Supreme Court appeal. This ruling raises concerns about existing and future trade agreements.
• Impact on Trade Negotiations: Ongoing negotiations with Japan and South Korea are facing challenges, particularly over agricultural products, which could be affected if the Supreme Court upholds the ruling.

Currency and Commodity Markets

• Dollar and Euro Movements: The U.S. dollar remained stable at 97.788, having decreased by 2.2% last month, while the euro slightly increased to $1.1697.
• Gold and Oil Prices: Gold prices rose by 2.2% last week, nearing a four-month high at $3,444 an ounce, driven by the dollar's decline and expectations of lower interest rates. Conversely, oil prices faced pressure with Brent crude at $67.35 per barrel and U.S. crude at $63.89 per barrel, ahead of an anticipated output increase from OPEC+.