Asian Shares Rise as Meta and Amazon Beat Expectations, US Jobs Data Awaited

Asian shares rallied on Friday as a late surge in U.S. tech stocks, fueled by impressive earnings results from Meta Platforms and Amazon, lifted investor sentiment. Meta and Amazon saw their shares spike by 15% and 7% respectively in after-hours trading, boosting their combined market value by a staggering $280 billion. This positive momentum carried over to the Asian markets, with Japan’s Nikkei gaining 1% and Hong Kong’s Hang Seng index surging 1.5%. The broader Asia-Pacific index also recorded gains of 1.1%. However, concerns about the U.S. commercial real estate sector and regional banks continue to weigh on markets, with the KBW Regional Banking index falling 2%. All eyes are now on the U.S. jobs data, which, if disappointing, could increase expectations of rate cuts. Economists predict that 180,000 new jobs were added in January, with the unemployment rate possibly ticking up to 3.8% from the previous month’s 3.7%. A lower-than-expected figure could revive talks of a rate cut in March. U.S. Treasury yields dropped to their lowest levels this year, while the dollar weakened against its peers. The euro and sterling both gained ground, buoyed by positive data and cautious rate cut statements from the Bank of England. In energy markets, oil prices rebounded slightly following reports of a potential ceasefire between Israel and Hamas, easing supply concerns. Brent crude futures rose 0.7% to $79.26 a barrel, while U.S. West Texas Intermediate crude gained 0.6% to $74.3 a barrel. As investors wait with bated breath for the U.S. job figures, the global market shows signs of cautious optimism amidst ongoing uncertainties.