Stock Futures Rise Ahead of Key U.S. Jobs Report

While markets are having to cope with some political uncertainty amid speculation that incumbent Joe Biden may drop out of the presidential race, optimism about company earnings and the prospect of lower interest rates are providing support. Fresh data on the U.S. labor market today will add color to the outlook for the economy.

For live coverage and analysis of the Jobs report, click here.

Oil prices were on track for weekly gains on signs of strong demand over the summer and hopes that the U.S. central bank will cut interest rates soon.

Brent crude was up 0.2% at $87.62 a barrel, while WTI traded 0.4% higher to $84.23 a barrel.

The latest U.S. data signaled the labor market is slowing down, fueling hopes that the Federal Reserve might start cutting rates in September.

According to ANZ analysts, sentiment this week was also supported by strong mobility indicators and U.S. inventory data in line with a tightening market balance, as well as intensifying geopolitical tensions in the Middle East.

Meanwhile, Saudi Arabia cut the price of all crude grades it sells to Asia, underlining the pressure that OPEC producers face amid robust non-OPEC supply growth.

The Nikkei Stock Average ended flat at 40912.37 as declines in auto and shipping stocks offset gains in retail and pharmaceutical shares.

Honda Motor shed 3.2% after its plan to offer shares worth billions of dollars. Mitsui O.S.K. Lines dropped 3.6%, while Eisai gained 1.6% and Isetan Mitsukoshi Holdings climbed 7.6%. The broader Topix index fell 0.5% to 2884.18.

Investors will be focusing on U.S. jobs data due later in the day.

USD/JPY was at 160.62, compared with 161.26 as of Thursday 5 p.m. ET. The 10-year Japanese government bond yield fell one basis point to 1.070%.