In This Article:
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Markets nervous before non-farm payrolls
* U.S. short-term Treasury yields continue to fall
* Central banks struggling with response to trade friction
* Asia ex-Japan stocks headed for third weekly decline
By Stanley White
TOKYO, Oct 4 (Reuters) - Asian stocks edged up on Friday, thanks to gains on Wall Street, but signs of widening cracks in the global economy curbed risk appetite as markets looked to a key U.S. job report that could determine whether the Federal Reserve cuts rates further.
Investors have been caught out by a set of weak U.S. data this week, including surveys on services and manufacturing sectors, deepening fears the Sino-U.S. trade war is starting to hurt growth in the world's biggest economy.
"We'll probably see a bounce in Asian shares, but then nervousness will creep into the markets as the day progresses," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.4%. Japan's Nikkei stock index rose 0.22%, and Australian shares rose 0.54%.
The pan-region Euro Stoxx 50 futures were up 0.44%, German DAX futures 0.33% higher and FTSE futures advanced 0.69%.
U.S. stock futures tacked on 0.1% on Friday, following a 0.80% increase in the S&P 500 on Wall Street overnight on hopes that future Fed rate cuts will support corporate profits.
"The bounce on Wall Street is not a definitive sign. It's actually pessimistic for stocks that two-year yields are falling this much. It shows the bond market hasn't gotten on board with this positive growth story," AMP's Oliver said.
That sentiment was underscored by a frail performance for world stocks in recent weeks, hurt by political uncertainty in the United Stated and Hong Kong, geopolitical tensions in the Middle East, Brexit and a drumroll of weak global data.
In Asia, excluding Japan, equities were on course for the third weekly decline, their worst performance since four weeks of declines ended Aug. 16.
Japan's Nikkei was down 2.3% for the week, on course for its biggest weekly decline since Aug. 2, pressured by worries about trade friction and a resurgent yen.
Hong Kong shares were down 0.4% and though they are on track for a 0.17% weekly gain, sentiment is fragile as the territory's government mulls emergency laws to contain months of often violent protest against China's rule of the former British colony.
U.S. Treasury prices fell slightly but two-year yields remained near the lowest in two years due to growing signs the United States is feeling an economic chill from its trade war with China.