Asian markets fall ahead of key US jobs data

Equities fluctuated in Asian stocks Thursday as investors try to assess the Federal Reserve's plans for interest rates after boss Jerome Powell indicated they would start to come down in 2024.

Focus is also on the release of key US jobs data due Friday, following a positive set of figures showing the labour market remained healthy but appeared to be softening.

Meanwhile, gold and bitcoin were essentially flat after edging back from record highs earlier in the week.

In closely watched testimony before lawmakers Wednesday, Powell flagged progress on bringing inflation towards the Fed's two percent goal and said borrowing costs could be lowered as a result.

He warned that the battle was far from over, while investors are eyeing a first move in June after their March hopes were scrubbed by a strong inflation report last month.

"If the economy evolves broadly as expected, it will likely be appropriate to begin dialling back policy restraint at some point this year," he told the House Financial Services Committee.

"But the economic outlook is uncertain, and ongoing progress toward our two percent inflation objective is not assured," he added.

While prices have been tempered by the Fed's decision to push rates to a two-decade high, officials have lined up to warn that cutting them too early could erase all their hard work.

The economy continuing to be in rude health has allowed them to maintain that line, and stocks have pushed higher as confidence appears to be returning.

Powell's remarks saw all three main indexes rise on Wednesday, and Asian traders battled to maintain the positive momentum.

Shanghai, Sydney, Seoul, Taipei, Jakarta and Wellington all rose, though Hong Kong and Tokyo swung between gains and losses.

"Powell stuck to the script. The January inflation blip evidently hasn't shifted the broader calculus much and Chair Powell did little to break from recent Fed commentary," said National Australia Bank's Taylor Nugent.

Jose Torres at Interactive Brokers added that "his positivity concerning the trajectory of inflation amidst confidence that the central bank's current rate is likely at its peak is enough for market participants".

Traders are also keeping an eye on a policy meeting of the European Central Bank later Thursday, which is not expected to see any movement but investors are hoping for some guidance.

Key figures around 0230 GMT
Tokyo - Nikkei 225: DOWN 0.9 percent at 39,731.17 (break)
Hong Kong - Hang Seng Index: DOWN 0.1 percent at 16,420.57
Shanghai - Composite: UP 0.5 percent at 3,055.34
Dollar/yen: DOWN at 148.69 yen from 149.44 yen on Wednesday
Euro/dollar: DOWN at $1.0897 from $1.0899
Pound/dollar: DOWN at $1.2730 from $1.2732
Euro/pound: UP at 85.61 pence from 85.58 pence
West Texas Intermediate: DOWN 0.1 percent at $79.03 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $82.89 per barrel
New York - Dow: UP 0.2 percent at 38,661.05 (close)
London - FTSE 100: UP 0.4 percent at 7,679.31 (close)