Some Asian markets rose to a record high on Thursday, while the dollar firmed a touch against most currencies except the yen after stronger-than-expected US jobs data dented near-term rate cut expectations, setting the stage for the ⁠inflation report on Friday.

In Hong Kong, the benchmark Hang Seng Index opened trading down 55 points, or 0.2 percent, lower at 27,210.

The China enterprises index was 17 points, or 0.2 percent, lower at 9,250 while the tech indexwas 25 points, or 0.5 percent, lower at 5,474.

On the mainland, the benchmark Shanghai Composite Index opened up 0.12 percent at 4,136.

The Shenzhen component index was up by a similar percentage at 14,177 while the ChiNext, tracking China's Nasdaq-style board of growth enterprises, was up by 0.3 percent at 3,294.

The record highs came in early trading in South Korea and Japan, lifted by the technology sector.

Japanese shares have been on a tear since Prime Minister Sanae Takaichi's resounding election victory over the weekend on a campaign of increased economic stimulus.

That has pushed MSCI's broadest index of Asia-Pacific shares to another all-time peak.

The index was 0.65 percent higher, taking its gains in the first six weeks of the year to about 13 percent.

The market focus this week is on a slew of US economic reports with the data on Wednesday showing job growth unexpectedly accelerated in January while the unemployment rate eased a touch in signs of labour market stability that could encourage the Federal Reserve to leave rates unchanged in ⁠the near term.

Thomas Mathews, head of markets for Asia-Pacific at Capital Economics, said the big picture is ⁠that labour market conditions may be tightening ⁠at this point.

"If so, investors may be overestimating the case for further easing, and US Treasuries could be in for a bit more pain."

Market expectations for a Fed cut of at least 25 basis points at the central bank's ⁠March meeting had risen to about 20 percent before the jobs data, but retreated after the jobs report and were last at about five percent, according to CME's FedWatch Tool.

Traders are still pricing at least two rate cuts this year.

Inflation data is due on Friday and will be the next test for market views on interest rate cuts.

The yen was an outlier amid dollar strength as it firmed again and last fetched 153 per US dollar.

The currency has surged nearly three percent since ⁠Takaichi's win as investors suspect the big mandate could lead the government to be fiscally responsible as it eliminates the need for negotiations with opposition parties.

"Yen shorts are collectively reassessing positions, although at this stage the bearish trend in JPY that started in early 2025 looks more like a reversion to the mean than the start of a structural bull market," said Chris Weston, head of research at Pepperstone.

"That said, traders need to stay open-minded as the macro picture evolves and where the market decides where it ultimately wants to take JPY." (Reuters/Xinhua)