The Japan Times - Stocks rise ahead of US jobs data and key tariffs ruling

Most stocks have enjoyed a solid start to the new year, with indexes in Seoul, Frankfurt and London hitting record highs this week, largely on optimism for the tech sector.

Swiss mining giant Glencore jumped ten percent to top London's FTSE 100 index after confirming it was in merger talks with Australian-British rival Rio Tinto, which fell two percent.

London, Paris and Frankfurt were also higher in midday trading.

"Global markets await two key events in the US later today which could significantly impact volatility," said Emma Wall, chief investment strategist at Hargreaves Lansdown.

Traders will pore over nonfarm payrolls figures for December, widely expected play a key role in the Federal Reserve's decision-making at its next interest-rate meeting this month.

The central bank indicated last month that its next move could be a pause after three successive cuts, though analysts said that a big downside miss could revive talk of another reduction.

The US Supreme Court's possible ruling on the legality of many of Trump's punishing tariffs is also keeping investors occupied.

A ruling against the government could have a huge impact on its economic and fiscal plans.

"Some may read it as an effective cut to inflation which would be good news for equities, but it also means a cut to government revenues -- bad news for bonds," Wall said.

Wall Street ended Thursday on a mixed note, but Asia saw a more positive run ahead of the weekend.

Stock markets in Tokyo, Singapore, Seoul, Bangkok and Manila rose, though there were losses in Wellington, Taipei, Mumbai and Jakarta.

Hong Kong and Shanghai were helped by figures showing that Chinese inflation rose more than expected last month, extending a period of growth following months of deflationary pressure.

The 0.8 percent increase in consumer prices was the fastest pace since February 2023, though analysts noted that the increase was mainly for food costs, masking broader weaknesses.

Chinese AI startup MiniMax soared as much as 78 percent on its Hong Kong trading debut, a day after rival Zhipu AI enjoyed its own strong first day, a sign that healthy investor demand is rewarding the country's rapidly developing sector.

Oil prices extended their gains after rallying more than three percent Thursday, after Trump threatened to hit Iran "very hard" if the authorities killed protesters amid mounting civil unrest over an economic crisis.

Crude prices had stumbled earlier in the week after Trump said Venezuela would ship millions of barrels to the United States following the toppling of the South American country's leader.

- Key figures at around 1100 GMT -

London - FTSE 100: UP 0.5 percent at 10,093.18 points

Paris - CAC 40: UP 0.7 percent at 8,304.46

Frankfurt - DAX: UP 0.2 percent at 25,183.89

Tokyo - Nikkei 225: UP 1.6 percent at 51,939.89 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 26,231.79 (close)

Shanghai - Composite: UP 0.9 percent at 4,120.43 (close)

New York - Dow: UP 0.6 percent at 49,266.11 (close)

Euro/dollar: DOWN at $1.1645 from $1.1652 on Thursday

Pound/dollar: DOWN at $1.3409 from $1.3432

Dollar/yen: UP at 157.67 yen from 157.16 yen

Euro/pound: UP at 86.85 pence from 86.75 pence

West Texas Intermediate: UP 0.5 percent at $58.03 per barrel

Brent North Sea Crude: UP 0.5 percent at $62.28 per barrel

M.Ito--JT