HONG KONG - Asian markets rallied on Friday, tracking a surge on Wall Street fuelled by bargain-buying from the previous day's sell-off, while strong earnings from tech titans soothed worries about the impact of higher interest rates on bottom lines.
Disappointment over the Federal Reserve's warning this week that borrowing costs would not likely be cut in March was tempered by the knowledge they are all but certain to come down this year.
Data indicating a softening US labour market -- jobless claims rose and private-sector jobs creation came in below forecasts -- added to the optimism that the central bank will move several times before 2025.
"Traders are not letting go of the possibility of an earlier-than-expected rate cut," said Fawad Razaqzada of City Index and Forex.com.
"Those expectations could rise further if incoming US data from now on takes a bearish turn."
All eyes are now on the release later Friday of the crucial non-farm payrolls report, particularly after Fed boss Jerome Powell suggested decision-makers could be swayed by a particularly big miss on key indicators.
"It could be Frantic Friday on any NFP beats or misses but an extremely bullish one if the jobs report shows a jump higher in the unemployment rate that justifies a March cut," said SPI Asset Management's Stephen Innes.
All three main indexes on Wall Street jumped at least one percent and are expected to build on that later in the day, as Facebook parent Meta soared more than 10 percent in after-hours trading in reaction to strong earnings and the announcement of its first quarterly dividend.
Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta also advanced.