[MARKET ANALYSIS] Asia-Pac stocks are mostly positive but with gains capped as NFP data and US Supreme Court ruling on tariffs loom

APAC Stocks: Mostly Positive

• Asia-Pac stocks mostly shrugged off the mixed lead from Wall St with the regional bourses predominantly in the green, but with further upside limited as participants brace for the looming US Non-Farm Payrolls report and the Supreme Court's ruling on tariffs.

ASX 200: +0.1%

• Ekes mild gains amid strength in energy and consumer stocks, but with upside limited by losses in financials and with Rio Tinto shares sliding almost 6% after reports that the Co. and Glencore revived merger talks.

Nikkei 225: +1.2%

• Outperforms following the stronger-than-expected Household Spending data from Japan, which showed surprise Y/Y growth of 2.9% (exp. -0.9%), while the gains are led by index heavyweight Fast Retailing after it posted higher profits and upgraded its guidance.

Hang Seng & Shanghai Comp: Hang Seng -0.1% / Shanghai Comp +0.4%

• Chinese markets are somewhat indecisive after mixed inflation data from China and the substantial weekly liquidity drain by the PBoC, while there was a mixed reaction in tech stocks following reports that China is to approve some NVIDIA (NVDA) H200 purchases as soon as this quarter.

US Equity Futures: Flat

• Index futures are uneventful with participants lacking commitment as the key US jobs data looms.

European Equity Futures +0.3%

• Indicate a positive cash market open with Euro Stoxx 50 futures up 0.3% after the cash market closed with losses of 0.3% on Thursday.

The mixed sentiment in Asia-Pac stocks indicates cautious trading as investors await key US Non-Farm Payroll (NFP) data and a Supreme Court ruling on tariffs. The NFP report is particularly significant, as it will provide insights into US labor market strength, potentially influencing future Fed policy on interest rates. This backdrop may keep market movements restrained until the data is released, highlighting the interplay between labor statistics and global equity performance.