Asian stocks tread water as nonfarm payrolls approach; RBI decision awaited By Investing.com

Investing.com– Most Asian stocks moved little on Friday with focus squarely on upcoming U.S. nonfarm payrolls data, which is expected to provide more cues on when the Federal Reserve could begin cutting interest rates.

Focus was also on a Reserve Bank of India decision on interest rates, after local stocks saw wild swings this week following a surprise result in the 2024 general elections. 

Regional stocks took middling overnight cues from Wall Street, as investors hunkered down before the , which is expected to provide definitive cues on the labor market and interest rates. 

U.S. stock index futures tread water in Asian trade. 

Still, appetite for risk-driven assets was somewhat buoyed by interest rate cuts by the and the this week, which drummed up optimism over looser monetary conditions this year. 

Indian stocks eye mildly positive open, RBI awaited 

for India’s index pointed to a mildly positive open, as the index clocked a two-day rebound from steep losses incurred on Tuesday.

The Reserve Bank of India is widely expected to on Friday, with few plans to begin altering policy, given that inflation has remained sticky in the country. But the RBI is also expected to reiterate a strong outlook for the Indian economy.

The Nifty and were still set for weekly losses, having plummeted from record highs earlier this week after a BJP-led alliance clinched a much smaller majority in the 2024 elections, presenting a difficult third term for Prime Minister Narendra Modi.

Japanese stocks tick lower as BOJ prepares to tighten policy 

Japan’s and indexes fell about 0.2% each, weighed by growing bets that the Bank of Japan will by lowering its bond purchases.

Governor Kauo Ueda reiterated plans for such a moved earlier this week, while signs of a rebound in Japanese inflation and improving wages also drove up expectations of tighter policy.

But other data released on Friday showed Japanese fell more than expected in April, raising doubts over just how much headroom the BOJ had to tighten policy. 

Chinese stocks fall with trade data on tap

China’s and indexes fell 0.7% and 0.2%, respectively, on Friday, with focus squarely on upcoming for more cues on Asia’s biggest economy.

Losses in mainland stocks dragged Hong Kong’s down 0.4%.

China’s are expected to have rebounded sharply in May on robust industrial production and improving overseas demand.

But are expected to remain subdued amid weak local demand.

Chinese stocks have remained largely rangebound in recent weeks, as optimism over an economic recovery in the country soured in anticipation of more stimulus measures from Beijing. 

Broader Asian stocks inched higher. Australia’s index rose 0.3%, while South Korea’s added 0.7% in catch-up trade after a holiday on Thursday.