Japan household spending, U.S. nonfarm payrolls

Asia-Pacific markets mostly fell on Friday as investors brace for a crucial jobs report from the U.S. and digest household spending data from Japan.

Japan’s household spending data for July rose 0.1% in real terms from the previous year, compared to a 1.2% rise expected from economists polled by Reuters, and a reversal compared to a 1.4% fall in June.

Data from the country’s statistics bureau said the average household monthly expenditure for July 2024 was 290,931 yen ($2,031.35), up 3.3% in nominal terms from the previous year.

Average household monthly income came in at 694,483 yen in July, 8.9% higher in nominal terms and up 5.5% in real terms from the previous year.

The weak spending report could constrain the Bank of Japan’s options to raise rates, although this may be offset by the strong wage growth numbers from Thursday.

Japan’s Nikkei 225 started the day marginally below the flatline, with the broad based Topix 0.42% lower after the data release.

South Korea’s Kospi was 0.8% lower, and the small cap Kosdaq was down 1.41%.

In contrast, Australia’s S&P/ASX 200 climbed 0.14%.

Hong Kong Hang Seng index futures were at 17,431, lower than the HSI’s last close of 17,444.3.

Mainland China’s CSI 300 futures were at 3,254, marginally lower than the last close of 3,257.76.

Overnight in the U.S., all three major indexes fell as investors dumped risk assets and concerns mounted over the outlook for the U.S. economy.

The S&P 500 dipped 0.3% for a third straight day of losses, while the Dow Jones Industrial Average lost 0.54%. The Nasdaq Composite gained 0.25% after rising as much as 1.2% earlier in the session.

—CNBC’s Samantha Subin and Jesse Pound contributed to this report.