Equities in Asia were primed for a flat open with traders now looking ahead to US jobs data due later Friday for clues on Federal Reserve rate cuts.

Equity futures for Japan were largely unchanged while those for Australia and Hong Kong were slightly lower. The region-wide Euro Stoxx 50 index rose 0.4% for a second daily advance. US markets were closed for a Thursday holiday. An index of dollar strength dropped for a third day.

Keir Starmer’s Labour Party is projected to win the UK general election with a huge majority, exit polling data showed, delivering a blow to Rishi Sunak’s governing Conservatives. The pound was little changed early Friday after a run of strengthening against the greenback that began last week.

Meanwhile, emerging-market stocks advanced to the highest in more than two years as the latest economic indicators from the US continue to boost risk appetite. The MSCI gauge tracking developing-world currencies rose 0.3%, with the Brazilian real leading gains.

“Markets expect employment to show a slight slowdown or stability. Any sign that the US economy is cooling faster could be very positive for emerging currencies,” said Marco Oviedo a senior investment strategist at XP Investimentos in Sao Paulo.

France’s CAC 40 benchmark index advanced for a second day in the buildup to this weekend’s final round of voting in snap parliamentary elections. The gauge extended gains as polls suggested Marine Le Pen’s National Rally and its allies will fall well short of a majority.

In Asia, investors will be looking out for fresh records in Japan’s Topix equity benchmark, which set a new high Thursday. The yen was little changed early Friday after slightly strengthening in a rebound from the lowest level since 1986 reached on Wednesday.

Data releases in the region Friday include inflation for the Philippines, Thailand and Taiwan. Japan household spending and Singapore retail sales data will also be released.

Global stocks are on track for their longest stretch of weekly gains since March, driven by a series of soft US economic data, which has revived hopes for a September rate cut.

Reports on Wednesday showed the American services sector contracted at the fastest pace in four years, while the labor market saw further signs of softening before Friday’s key jobs figures.

“With the ISM services yesterday falling to 48.8, the weakest since the pandemic and job claims deteriorating, ultimately the negative data is being seen as positive for markets,” said Justin Onuekwusi, chief investment officer at St James Place. “It feels like September is the date everyone is now looking at.”

West Texas Intermediate, the US oil price, edged higher early Friday. Bitcoin traded around $58,500.

  - Bloomberg