Asian and European markets moved higher on Friday, supported by a global equity rally as investors awaited a crucial US jobs report that could influence the Federal Reserve’s interest rate path.

The sharp selloff in Chinese stocks also showed signs of slowing amid reports that regulators may step in to stabilize markets. Meanwhile, global bond yields eased after spiking earlier in the week due to growing concerns over government debt levels.

In Europe, major indices in London, Paris, and Frankfurt opened on a positive note. In the US, markets were eyeing the upcoming nonfarm payrolls report, expected to offer more clues on the Fed’s potential rate cuts.

“All eyes will be on Friday’s nonfarm payrolls report with bad news likely to be interpreted as good news,” said Victoria Scholar, head of investment at Interactive Investor, noting that weaker jobs data could increase the chances of a Fed rate cut.
Fresh US data released Thursday showed a higher-than-expected number of unemployment claims and slowing private sector hiring, reinforcing speculation that rate cuts may be on the horizon.

“Investors now look for final confirmation that the weakening trend is entrenched and justifies a Fed cut — or two,” said Ipek Ozkardeskaya of Swissquote Bank.

In Asia, a recent rally in Chinese semiconductor stocks lost momentum, with Cambricon Technologies plunging 14 percent on Thursday. However, China’s blue-chip CSI 300 recovered somewhat on Friday, after recording its worst daily loss since April.

Bloomberg reported that Chinese financial regulators are considering steps to curb the pace of the stock market selloff, helping to calm nerves. “The selloff is more than a blip; it’s the first crack in the facade of a $1.2 trillion melt-up,” said Stephen Innes of SPI Asset Management.

Tokyo and Hong Kong markets rose, while Shanghai’s composite index rebounded after an early dip. Japanese bond yields also eased, though the Nikkei failed to hold onto early-session gains.

Investors continued to view gold as a safe haven, with bullion prices holding near record highs. Oil prices, however, extended losses amid concerns of oversupply as OPEC+ countries are expected to relax production cuts.

“Geopolitical risks… remain elevated, with mounting fears of further Russian attacks on Ukraine. That keeps downside potential in oil limited,” added Swissquote’s Ozkardeskaya.

Oil prices have declined 12 percent this year due to rising output from non-OPEC+ producers and weakening demand driven by trade tensions.

Key figures around 0715 GMT

Tokyo – Nikkei 225: 1.0% at 43,018.75

Hong Kong – Hang Seng: 1.54% at 25,445.60

Shanghai – Composite: 1.24% at 3,812.51

London – FTSE 100: 0.3% at 9,240.84

Paris – CAC 40: 0.3% at 7,723.97

Frankfurt – DAX: 0.7% at 23,843.24

New York – Dow Jones (previous close): 0.8% at 45,621.29

Currencies:

Euro/dollar: $1.1673 (up from $1.1649)

Pound/dollar: $1.3455 (up from $1.3437)

Dollar/yen: 148.24 yen (down from 148.45 yen)

Euro/pound: 86.75 pence (up from 86.72 pence)

Commodities:

WTI crude: 0.5% at $63.15 per barrel

Brent crude: 0.4% at $66.72 per barrel