Asian markets slip following weak overnight close on Wall Street and FTSE

Asian stock market indices were trading lower on Friday (2 December), with the Shanghai Composite down 0.78% at 3,247.66 as of 4.47am GMT, following weak overnight close on both Wall Street and FTSE.

Investors are said to be awaiting the US non-farm payrolls report for November, scheduled to be released later in the day. They are also said to be awaiting the outcome of the constitutional referendum in Italy and the Austrian presidential election this weekend.

"A weak lead from US markets, Italy's referendum and tonight's release of US jobs data all provide reasons for the stock market to close the week in cautious, wait-and-see mode," Ric Spooner, chief market analyst at CMC Markets, said.

The US nonfarm payrolls report, which is closely watched by the US Federal Reserve, will further indicate the strength of the American economy. Cynthia Jane Kalasopatan, market economist at Mizuho Bank, was cited by CNBC as saying: "Given rising inflation expectations with markets pricing in significant fiscal stimulus from the Trump administration, a tightening labour market would further complicate the inflation outlook and render the Fed to be far less dovish that it had been in the recent past."

Indices in the region were trading as follows at 5.04am GMT:

Overnight (1 December), the FTSE 100 closed 0.45% lower at 6,752.93, while the S&P 500 Index closed 0.35% lower at 2,191.08.

Among commodities, oil which surged in the last trading session amid the Opec deal, was trading in the red. As of 5.13am GMT, WTI crude oil was trading lower by 0.78% at $50.66 (£40.17) a barrel, while Brent crude was trading 1.17% lower at $53.31 a barrel.