Market Jitters: Payrolls and Trade Tensions Take Center Stage

Asian markets teeter as investors brace for the payrolls report amid trade tensions and a public spat between Trump and Musk. While some indices showed growth, Tesla took a significant hit. The U.S.-China trade discord remains unresolved and labor markets reveal unexpected strains, hinting potential policy shifts.

Asian shares experienced fluctuation on Friday, with investors anxiously awaiting the crucial payrolls report. Highlighting market anxiety, Tesla saw notable declines amidst the public spat between U.S. President Trump and Elon Musk.

A raft of weak economic indicators this week has heightened concerns that the forthcoming payrolls numbers might disappoint, exacerbating fears of stagflation. This situation adds pressure on the Federal Reserve to adjust policies. Despite the turmoil, Tesla shares did recover slightly in after-hours trading after a steep 14% drop, shedding $150 billion in value due to Trump's threats against Musk's ventures.

In global markets, Nasdaq futures remained unchanged while S&P 500 futures made modest gains. In Asia, Japan's Nikkei edged up by 0.3%, yet Korea's KOSPI remained closed for a public holiday. Meanwhile, geopolitical tensions, particularly a muted conversation between Trump and China's Xi, continue to keep markets on edge. Investors remain cautious as they await further developments.

(With inputs from agencies.)