Asian markets fell on Friday as investors remained concerned over recession risks amid signals of more aggressive policy tightening by central banks across the globe.

Also Read| Dollar rises ahead of US Jobs data

The dollar and Treasury yields stayed elevated as various Federal Reserve officials talked about more rate hikes ahead of critical U.S. employment data later in the day. Surging crude oil prices exacerbated fears about extended inflation.

The Nikkei 225 index in Japan fell 0.7%, retreating from a two-week high achieved on Thursday.

Also Read| Stocks to watch on Friday, October 7, 2022

South Korea‘s Kospi fell 0.33%, driven partly by a decrease in Samsung Electronics stock after the tech giant reported a 32% loss in quarterly operating earnings, which was worse than expected. The Australian stock market index fell 0.59%.

Hong Kong‘s Hang Seng fell 1.17% in early trading, with tech companies down 2.32%. 

Also Read| World Bank cuts India’s GDP growth forecast by 100 basis points

MSCI’s broadest Asia-Pacific share index fell 0.85%. Meanwhile, US e-mini SP500 futures were 0.12% down after the index fell 1% overnight.

Stocks began the week strongly, with the MSCI world stock index rising 5.65% in the first two days on expectations that the speed of central bank tightening would ease, but that has since faded.

Also Read| US weekly jobless claims rose more than expected

Markets presently expect a 75 basis-point hike at next month’s US Federal Open Market Committee meeting.

In Tokyo trade, the yield on the 10-year Treasury note was at 3.8297%, slightly changed from its New York close after a two-day recovery from a two-week low of 3.5620%.

Also Read| Apple in talks to make AirPods, Beats in India: All you need to know

The dollar index, which measures the value of the US currency against a basket of six major currencies, was little changed at 112.24 after a 1.84% two-day rally from a two-week low. Crude oil prices rose further on Friday, fueled by OPEC+ supply cutbacks announced earlier this week.