Asian Markets Waver as U.S. Labor Data Cools Rate Hike Bets

MSCI's broadest index of Asia-Pacific shares outside Japan nudged up 0.1% after a period of sustained losses. The modest recovery remained fragile, hampered by a retreat in South Korean chipmakers that mirrored heavy selling pressure seen in U.S. technology stocks during the previous session.

Revised payroll data signaled a definitive slowdown in job growth, forcing a reassessment of the central bank’s policy trajectory. According to the CME Group's FedWatch tool, futures markets now price in a 46.8% probability that the Federal Reserve will hold rates steady. Analysts at Westpac noted that these shifting expectations have significantly challenged the narrative of a near-term hike, leaving traders to navigate an increasingly ambiguous economic outlook.