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HK stocks set for greatest weekly efficiency in 4 months

Yen at 2 month high up on increasing 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 crucial U.S. payrolls data as financiers considered prospects that a more comprehensive trade war might be averted, while the yen hit its highest in nearly 2 months on increasing chances of more rate hikes in Japan this year.

In a week that began with U.S. President Donald Trump kicking off a trade war, financiers have actually been reluctant in making major relocations as threatened duties on China were implemented.

Beijing's determined tit-for-tat response has actually left room for negotiations, analysts state, and that has enabled traders to concentrate on the AI theme in China in the wake of home-grown start-up DeepSeek's advancement.

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

European stocks have actually staged their best efficiency in a decade against Wall Street in the very first six weeks of 2025, however 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 alleviated 0.21%.

Futures for Nasdaq and S&P 500 were down about 0.2% as shares of Amazon slipped in 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% increase in the week, its greatest weekly performance 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 considerable noise and uncertainty, we don ´ t see intensifying trade tensions as a game changer in the prospects for the Chinese market," said James Cook, investment director for emerging markets at Federated Hermes.

"China's bigger problem is not Trump however the domestic economy."

On the economic front, out of work claims, layoffs and labour costs/productivity offered a beginning to Friday's keenly awaited January work report, with the information most likely to show the impact of wild fires in California and winter throughout much of the nation.

Nonfarm payrolls are expected to have actually increased by 170,000 tasks last month after rising 256,000 in December, a Reuters poll of economists showed.

"Markets might deal with some volatility around the data if it beats expectations, but it won't change the course of the FOMC policy as more information will be needed," said Anderson Alves, a trader with ActivTrades.

Markets are pricing in 43 basis points of 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 investors careful, worries have alleviated that Trump's technique to tariffs might intensify into an international trade war.

RISING YEN

The Japanese yen has been on a tear this week buoyed by safe-haven circulations as well as rising expectations of the Bank of Japan increasing rate 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 greatest level because December 10 however was last a little weaker at 151.71. The currency is headed for wiki.myamens.com an over 2% rise against the dollar this week, wiki.dulovic.tech its greatest weekly efficiency considering that 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 but cautioned it would be cautious moving forward, wiki.eqoarevival.com in the face of a potential inflation uptick and geopolitical worries.

Oil rates increased partially on Friday however were on track for a third straight week of decline.

Gold prices steadied on Friday near record-high levels and setiathome.berkeley.edu were headed for their sixth successive weekly gain driven by safe-haven flows.

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