Kospi Rises on Fed Rate-Hold Hopes

At the opening on Friday, South Korea's Kospi climbed 1.14 percent. The increase followed a broad upswing on Wall Street, coming after Fed Governor Christopher Waller indicated rates would remain unchanged this month.

Adding 74.88 points, the benchmark reached 6,650. That extended a recovery from a steep drop earlier this week linked to tensions in the Middle East.

Waller’s Remarks Ease Rate Hike Worries

On Thursday, Waller delivered the remarks, stating he would lean toward backing no change. He advocated maintaining rates in the 3.5 percent to 3.75 percent band during the Fed’s September 15-16 gathering.

The comments drove Treasury yields lower, contributing to declining rate hike probabilities seen on prediction markets this week.

Japan’s Nikkei 225 and Hong Kong’s Hang Seng also started the session in positive territory. South Korea’s Kosdaq, which tracks small-cap stocks, posted an even larger gain.

The Thursday rally shaped the mood throughout U.S. markets. The Dow Jones Industrial Average rose 1.18 percent, marking its strongest session since August 4.

The S&P 500 increased 1.06 percent, and the Nasdaq Composite climbed 1.4 percent. All three major indexes are heading for a weekly gain.

Jobs Data Seen as Next Market Driver

Market participants are focusing on the August nonfarm payrolls report due Friday, a data release that has frequently influenced risk assets following recent monthly updates.

According to a Dow Jones survey, economists anticipate an addition of 53,000 jobs. This contrasts with a July decline of 23,000 jobs. The unemployment rate is projected to stay at 4.1 percent.

José Torres, a senior economist at Interactive Brokers, stated that softness in the labor market should drive the central bank toward looser monetary policy.

Ongoing decreases in employment should be enough for the central bank to start considering the labor side of its mandate when prescribing policy.

Torres, representing Interactive Brokers, provided the statement to CNBC.

Torres is also monitoring inflation data due next week, specifically the consumer price index and producer price index.

The trading session concluded a largely upbeat day across the region. The jobs figures due Friday could either strengthen the argument for dovish policy or rekindle worries about rate increases. In either scenario, the data will help shape the sentiment ahead of the Fed’s September meeting.