HK stocks set for strongest weekly efficiency in 4 months

Yen at 2 month high on rising bets on rate hikes this year

Gold stable near record peak, oil set for 3rd weekly drop

By Ankur Banerjee

SINGAPORE, Feb 7 (Reuters) - Global stocks meandered on Friday ahead of essential U.S. payrolls data as financiers thought about prospects that a broader trade war could be averted, while the yen struck its greatest in nearly 2 months on rising chances of more rate hikes in Japan this year.

In a week that started with U.S. President Donald Trump beginning a trade war, investors have actually been hesitant in making significant moves as threatened responsibilities on China were executed.

Beijing’s measured tit-for-tat action has actually left room for settlements, experts state, which has permitted traders to focus on the AI theme in China in the wake of home-grown start-up DeepSeek’s breakthrough.

European futures pointed to a controlled open after the pan-European STOXX 600 index closed at a record high on Thursday on the back of robust business profits.

European stocks have actually staged their best efficiency in a decade against Wall Street in the very first six 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 insinuated extended trading overnight on weakness in the retailer’s cloud computing system and soft projection.

In Asia, Hong Kong’s Hang Seng Index hit 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 because mid-December.

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

"China’s bigger problem is not Trump but the domestic economy.“

On the economic front, unemployed claims, layoffs and labour costs/productivity supplied a beginning to Friday’s keenly awaited January work report, with the data likely to show the impact of wild fires in California and cold weather condition across much of the country.

Nonfarm payrolls are expected to have actually increased by 170,000 tasks last month after surging 256,000 in December, a Reuters poll of financial experts revealed.

"Markets might deal with some volatility around the information if it beats expectations, however it won’t change the path of the FOMC policy as more information will be required,” said Anderson Alves, a trader with ActivTrades.

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

While political uncertainties kept financiers cautious, worries have actually eased that Trump’s method to tariffs could escalate into a global trade war.

RISING YEN

The Japanese yen has actually been on a tear today buoyed by safe-haven circulations as well as rising expectations of the Bank of Japan increasing rate of interest this year, with market value in 34 basis points of walkings for the year.

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

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

Oil costs increased marginally on Friday but were on track for a third straight week of decrease.

Gold costs steadied on Friday near record-high levels and utahsyardsale.com were headed for [users.atw.hu](http://users.atw.hu/samp-info-forum/index.php?PHPSESSID=b3fcf66c2a5a733122eaad996f22a467&action=profile