The softening labor market prompted traders to reprice Fed funds futures, which now anticipate a 30-basis-point increase by year-end, down from 36 basis points earlier in the week. This pivot provided enough lift to pull major indices out of the shadow cast by a persistent sell-off in semiconductor stocks. By mid-morning, Hong Kong’s Hang Seng Index climbed 1.4%, South Korea’s Kospi added 1.1%, and Japan’s Nikkei Stock Average rose 0.3%.

Currency markets remain on edge as the yen faces potential volatility during the U.S. Independence Day holiday. While the dollar recently strengthened 0.1% to 161.25 yen, analysts warn that thin liquidity could invite intervention. Joseph Capurso of CBA noted that Japan’s finance ministry has historically utilized holiday lulls to execute market moves. Finance Minister Satsuki Katayama confirmed the government stands ready to act on foreign exchange fluctuations, maintaining close coordination with U.S. counterparts to monitor the yen's performance.