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HK stocks set for greatest weekly performance in 4 months

Yen at two month high on increasing bets on rate hikes this year

Gold consistent near record peak, forum.altaycoins.com oil set for bytes-the-dust.com third weekly drop

By Ankur Banerjee

SINGAPORE, Feb 7 (Reuters) - Global stocks meandered on Friday ahead of essential U.S. payrolls information as financiers thought about prospects that a more comprehensive trade war might be averted, while the yen struck its greatest in nearly two months on rising chances of more rate walkings in Japan this year.

In a week that began with U.S. President Donald Trump starting a trade war, investors have actually been reluctant in making major moves as threatened duties on China were carried out.

Beijing's measured tit-for-tat action has left room for negotiations, experts say, which has enabled traders to focus on the AI theme in China in the wake of home-grown start-up DeepSeek's development.

European futures indicated a subdued open after the pan-European STOXX 600 index closed at a record high on Thursday on the back of robust business revenues.

European stocks have staged their finest performance in a years against Wall Street in the first 6 weeks of 2025, but focus is now on whether those gains can be sustained.

Eurostoxx 50 futures were down 0.41%, while FTSE futures fell 0.39%. DAX futures eased 0.21%.

Futures for Nasdaq and S&P 500 were down about 0.2% as shares of Amazon slipped in prolonged trading overnight on weakness in the retailer's cloud computing system and .

In Asia, Hong Kong's Hang Seng Index struck a three-month high, poised for a 4% rise in the week, its greatest weekly efficiency sustained by DeepSeek-led AI bets.

China's blue-chip stock index was 0.4% higher after touching a one-month high leaving MSCI's broadest index of Asia-Pacific shares outside Japan at its highest given that mid-December.

"Whilst there is substantial sound and uncertainty, we don ´ t see intensifying trade tensions as a video game changer in the potential customers for the Chinese market," said James Cook, investment director for emerging markets at Federated Hermes.

"China's larger issue is not Trump however the domestic economy."

On the economic front, out of work claims, layoffs and labour costs/productivity supplied a beginning to Friday's keenly awaited January work report, with the data likely to show the effect of wild fires in California and opensourcebridge.science winter throughout much of the country.

Nonfarm payrolls are anticipated to have increased by 170,000 jobs last month after surging 256,000 in December, a Reuters survey of financial experts showed.

"Markets might face some volatility around the information if it beats expectations, but it will not alter the path of the FOMC policy as more data will be required," said Anderson Alves, a trader with ActivTrades.

Markets are pricing in 43 basis points of reducing this year from the Fed with a rate cut in July fully priced in as policymakers remain in no hurry to start the rate-cutting cycle again.

While political uncertainties kept financiers wary, worries have relieved that Trump's approach to tariffs might intensify into a worldwide trade war.

RISING YEN

The Japanese yen has been on a tear this week buoyed by safe-haven circulations in addition to rising expectations of the Bank of Japan increasing rates of interest this year, with markets pricing in 34 basis points of walkings for the year.

The yen touched 150.96 per dollar in early trading, its strongest level since December 10 but was last a little weaker at 151.71. The currency is headed for an over 2% rise against the dollar today, its strongest weekly efficiency because late November.

Sterling was 0.1% lower at $1.24255 after dropping 0.5% on Thursday as the BoE cut interest rates by 25 basis points however warned it would beware going forward, in the face of a potential inflation uptick and geopolitical worries.

Oil rates rose marginally on Friday but were on track for a third straight week of decrease.

Gold costs steadied on Friday near record-high levels and were headed for their 6th successive weekly gain driven by safe-haven circulations.

(Reporting by Ankur Banerjee; extra reporting by Stephen Culp, Marc Jones and Alun John; editing by Shri Navaratnam and Sam Holmes)