Asian stocks tilt lower as investors await US job report – MarketWatch









Stocks across most Asian markets fell Friday as investors looked ahead to the U.S. employment report.

Asia-Pacific equities started with a modest downbeat tone, with country-specific issues weighing on Japanese and Australian stocks.

The Nikkei












NIK, -0.38%










closed down 0.4%, with the dollar falling below ¥110 to a seven-week low in early trade. Meanwhile, bond yields saw fresh declines overnight after the Bank of England on Thursday cut economic growth forecasts, potentially ending the prospect of higher interest rates in the U.K. this year. A stronger domestic currency and higher bond prices are pressure points for exporters and insurers, which are index heavyweights in Japan.

The S&P/ASX 200












XJO, -0.25%










  lost grip of gains to lose lower by 0.3%. The Reserve Bank of Australia during the session trimmed economic growth forecasts for the next year in the wake of the Australian dollar’s












USDAUD, +0.2522%










 recent gains.

The ASX was under pressure as shares of Commonwealth Bank of Australia












CBA, -3.87%










 fell 3.9%. Late Thursday, the major lender was sued by the Australian Transaction Reports and Analysis Centre for allegedly failing in its money-laundering reporting obligations more than 53,700 times.

CBA’s drop came amid weakness in the region among finance stocks, after quarterly results from some of the U.S.’s biggest insurers weighed on the broader financial sector.

Meanwhile, investors braced for Friday’s jobs report. For many, that means doing little trading. “Asian equities will move sideways as long as nothing untoward happens,” said Tim Kelleher, head of institutional foreign exchange trading at ASB Bank.

Economists expect payroll growth to slow in July, but not alarmingly so. The consensus estimate is for 180,000 new jobs to have been created last month, down from June’s initially reported 222,000.

While there will be another report before the next Federal Reserve meeting in September, July’s reading could still prove key for the dollar.

“The market is getting shorter and shorter U.S. dollars,” noted Kelleher, “so there is a risk the market is going to reverse pretty quickly” if the report is better than anticipated.

The Wall Street Journal Dollar Index












BUXX, +0.52%










 was flat during Asian trade.























Asian stocks tilt lower as investors await US job report – MarketWatch}