Asian stocks at record high, US jobs data buoys yields, dollar

Asian stocks rose to a record high on Thursday, while the dollar firmed a touch against most currencies except the yen after stronger-than-expected US jobs data dented near-term rate cut expectations, setting the stage for the inflation report on Friday. Stocks in South Korea and Japan, hit record highs in early trading, lifted by the technology sector. Japanese shares have been on a tear since Prime Minister Sanae Takaichi’s resounding election victory over the weekend on a campaign of increased economic stimulus. That has pushed MSCI’s broadest index of Asia-Pacific shares to another all-time peak. The index was 0.65% higher, taking its gains in the first six weeks of the year to about 13%. Market focus this week is on a slew of US economic reports with the data on Wednesday showing job growth unexpectedly accelerated in January while the unemployment rate eased a touch in signs of labour market stability that could encourage the Federal Reserve to leave rates unchanged in the near term.