Stocks Fall in Runup to US Jobs Data, Gold Slips: Markets Wrap

(Bloomberg) — Stocks declined and the dollar hovered near two-month lows as investors reined in risk ahead of key US economic data that will offer clues on the path for interest rates.

Asian shares fell 1.5% and futures pointed to a third day of losses for the S&P 500 as traders held back ahead of Tuesday’s November US jobs report, which is expected to show a sluggish labor market. Chinese stocks tumbled toward key bearish technical levels as fading tech gains and renewed economic growth concerns fueled a sharp selloff. European shares were also primed for a weak open.

Bitcoin reversed its earlier losses to trade around $86,500. Oil held near the lowest level since 2021 as traders weighed the outlook for a ceasefire in Ukraine, while gold pulled back after five days of gains.

The moves underscored a sense of caution building in the final weeks of a year marked by April’s market lows, when century-high US tariffs rattled investors, followed by the AI-driven rebound and Federal Reserve easing. With a large number of key economic data releases due this week, investors will get a clearer read on whether that narrative can hold.

“We’ve seen a clear risk-off tone across the region,” said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore. “Valuation concerns are also creeping in, and with major macro data prints — like today’s jobs report — some funds appear to be reducing beta exposure or locking in gains.”

Currencies were also in focus in Asia, with the yen gaining against the dollar to trade below 155 ahead of the Bank of Japan’s widely expected move to lift its key rate to the highest level in three decades on Friday. The Indian rupee slid to record lows and a rising number of officials are arguing for a stronger yuan to help rebalance the Chinese economy.

Traders were keeping a close eye on technology shares, with AI-related firms remaining under pressure. An MSCI gauge of Asian tech stocks fell for a second straight day, putting it on course for its lowest level since early December.

Some investors are also rotating into stocks that have so far remained in tech’s shadow.

“There is a general rotation out of AI and tech, which is spreading across to Asia,” said Ritesh Ganeriwal, head of investment at Syfe Pte. in Singapore.

Elsewhere, Nasdaq Inc., the second-largest exchange in the US, is looking for regulatory approval to extend trading hours on its stock venues to 23 hours during the work week.

Back in the US, the November jobs report will be key for investors assessing the future path of interest rates. The reading will also include an estimate of October payrolls — figures that were delayed by the federal shutdown, while the US consumer price index is scheduled for Thursday.

Treasury 10-year yields steadied around 4.17% after edging down on Monday amid bets the Fed will cut rates twice next year to support the jobs market even as inflation shows signs of stickiness.

What Bloomberg’s Strategists Say…

Rates traders turned decisively this month to betting that 2026 will be a year where rate hikes will outweigh cuts. The new year may look a lot like the trading patterns of recent months, with yields grinding higher to act as tougher hurdles for equity gains. Bonds will also face a tougher time of it.

— Garfield Reynolds, MLIV Asia Team Leader. Click here for the full analysis.

With the Fed still appearing to be more focused on labor-market weakness than inflation, we’re likely facing a “bad news is good” scenario for the jobs report, according to Chris Larkin at E*Trade from Morgan Stanley.

Fed Governor Stephen Miran argued the policy stance is unnecessarily restrictive. Fed Bank of New York President John Williams said policy is well positioned for next year following last week’s reduction. His Boston counterpart Susan Collins noted the rate decision was a “close call” as she’s concerned about high inflation.

“As long as the numbers don’t suggest employment is falling off a cliff, the markets may embrace soft data because it could lead to a more-dovish Fed,” Larkin said.

Corporate News:

Mitsubishi UFJ Financial Group Inc. is nearing a deal to buy a minority stake in India’s Shriram Finance Ltd., the latest foreign bank seeking to build a presence in the world’s most populous country. PayPal Holdings Inc. applied to become a bank in the US, looking to take advantage of the Trump administration’s openness to financial-technology companies entering the banking system. Ford Motor Co. will take $19.5 billion in charges tied to a sweeping overhaul of its electric vehicle business after struggling for years to make it profitable. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.6% as of 6:50 a.m. London time Nasdaq 100 futures fell 0.9% The MSCI Asia Pacific Index fell 1.5% Hong Kong’s Hang Seng fell 1.8% The Shanghai Composite fell 1.1% Euro Stoxx 50 futures fell 0.7% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1752 The Japanese yen rose 0.2% to 154.87 per dollar The offshore yuan was little changed at 7.0389 per dollar The British pound was little changed at $1.3363 Cryptocurrencies

Bitcoin rose 0.3% to $86,436.64 Ether was little changed at $2,942.73 Bonds

The yield on 10-year Treasuries was little changed at 4.16% Japan’s 10-year yield was little changed at 1.955% Australia’s 10-year yield was little changed at 4.73% Commodities

Spot gold fell 0.4% to $4,289.85 an ounce West Texas Intermediate crude fell 0.7% to $56.45 a barrel This story was produced with the assistance of Bloomberg Automation.

–With assistance from Toru Fujioka, Abhishek Vishnoi and Bernadette Toh.

©2025 Bloomberg L.P.