I. Yesterday's News
International News
1. U.S. job growth surged more than expected by 222,000 in June that could keep the Federal Reserve on course for a third interest rate hike this year. After the report, the dollar gained, while Wall Street stocks closed on a high note with the S&P 500 index posting its best gain in six sessions. Most U.S. Treasury yields rose, with longer-dated yields briefly hitting multi-week highs. However, the shorter-dated yields edged down as the unemployment rate rose to 4.4 percent and average hourly earnings increased only 0.2 percent.

2. The U.S. economy continues to churn out jobs and grow at a steady pace, with investment and consumer confidence both healthy and only moderate signs of risk in financial markets, the U.S. Federal Reserve said on Friday in its semiannual report to Congress.

3. British manufacturing slipped unexpectedly in May, dragged down by a fall in car production that will add to questions about the economic outlook going into the second half of 2017, official data showed on Friday. Manufacturing output edged down by a monthly 0.2 percent, cancelling out its rise in April and disappointing against forecasts for a 0.5 percent rise in a Reuters poll of economists, the Office for National Statistics (ONS) said. Broader industrial output data also disappointed, falling 0.1 percent in May after a 0.2 percent rise in April, and against expectations in the poll for a 0.4 percent increase.

4. The Bank of Japan offered to buy an unlimited amount of JGBs on Friday, as it sought to put a lid on domestic interest rates pushed higher by the broad sell-off in developed market bonds. Its aggressive bond buying operations sent most Japanese government bond yields lower and weakened the yen. It also marked a reversal in the recent slow and stealth tapering of the bond buying operation central to its easy monetary policy. In a special market operation on Friday, the BOJ offered to buy an unlimited amount of 10-year JGBs at a yield of 0.110 percent. This came on top of an increase in the size of its regular auction-based purchase of five to 10-year maturities to 500 billion yen from the previous 450 billion yen. The BOJ employed its most powerful weapon only for a third time after it started its yield curve control policy in September.

5. Canada's economy added 45,300 jobs in June, with full-time employment rising by 8,100, while the jobless rate fell to 6.5 percent, Statistics Canada said on Friday. A consensus of economists had expected an increase of 10,000 jobs in June and for the unemployment rate to stay at 6.6 per cent, according to Thomson Reuters.

Domestic News
6. Chinese President Xi Jinping on Friday urged the BRICS members to unswervingly promote the building of an open world economy, multilateralism and common development. The Chinese leader proposed that the BRICS countries need to unswervingly promote the building of an open world economy, safeguard the multilateral trade system, and steer economic globalization towards openness, inclusiveness, universal benefit, balance and win-win results so that all the people can benefit from economic growth and globalization.

7. Chinese Vice Premier Zhang Gaoli Friday urged increased efforts in a teleconference to meet urbanization reform targets while speeding up household registration system reform. In a bid to remove obstacles to the urbanization drive, Zhang stressed the target of increasing the ratio of registered urban residents to 45 percent of the total population by 2020, and relocating around 100 million rural residents to urban areas.

8. The National Development and Reform Commission (NDRC) has issued a circular to promote public-private partnerships (PPP) in traditional infrastructure fields in order to form a benign investment circle, requiring local governments to recommend 3-5 excellent PPP projects for promotion.

II. Market Overview
FX
1. Global Market
The dollar gained on Friday after a report showed the U.S. economy created far more jobs than expected in June and previous months, keeping the Federal Reserve on track to raise interest rates at least one more time this year. The dollar was last at 113.95 yen, up 0.7 percent, after earlier reaching a two-month high of 114.17 yen. The euro was last at $1.1403, down 0.2 percent. That pushed the dollar index up 0.2 percent to 96.0132. Sterling fell to a more than one-week low of $1.2871 and was last down 0.7 percent at $1.2883.

2. Home Market
China's yuan closed in the negative territory against the dollar on Friday as upbeat U.S. Payroll report boosted the dollar.

Precious Metals
Gold fell to the lowest in nearly four months on Friday after stronger than expected United States jobs data increased the likelihood of another U.S. interest rate increase and the dollar rose. Spot gold was down 1.2 percent at $1,209.90 an ounce by 1821 GMT, after touching $1,207.15, the weakest since March 15. It has dropped about 2.5 percent this week and is set for its biggest weekly fall since the week of May 5. U.S. gold futures for August delivery settled down 1.1 percent at $1,209.70. Gold has shed about 6 percent since touching a seven-month peak of $1,295.97 on June 6.
Silver fell 3.2 percent to $15.49 per ounce, after falling 7 percent within one minute of trade to $14.86 an ounce, its lowest in 15 months. Palladium fell 0.4 percent to $837.75 per ounce after hitting its lowest since June 2 earlier in the session. Platinum dropped 1.2 percent to $899.

Commodities
1.Crude Oil
Oil prices settled nearly 3 percent lower on Friday as rising U.S. production as OPEC exports hit a 2017 high cast doubt over efforts by producers to curb global oversupply. Brent crude settled down $1.40, or 2.9 percent, at $46.71 a barrel, after falling to $46.28, its lowest in more than a week. U.S. West Texas Intermediate (WTI) crude futures finished $1.29, or 2.8 percent, lower at $44.23 a barrel, after trading as low as $43.78.

2.Base Metals
Aluminium fell on Friday, hit by profit taking and signs that supply remains robust despite worries about reduced capacity in China. Benchmark aluminium on the London Metal Exchange ended down 0.7 percent at $1,930 a tonne, having hit its highest since May 30 on Thursday at $1,948. Bellwether copper ended down 0.4 percent at $5,828 a tonne.

U.S. Treasuries
1. U.S. Bonds
Most U.S. Treasury yields rose on Friday, with longer-dated yields briefly hitting multi-week highs, after U.S. jobs data came in strong enough to keep expectations alive for tighter global central bank monetary policy. Benchmark 10-year Treasury yields hit a more than eight-week high of 2.398 percent and 30-year yields hit a more than six-week high of 2.943 percent, on track for their steepest two-week increase since the U.S. presidential election ended on November 8.

2. Chinese bonds
Yields of cash bonds in China's interbank bond market were little changed in the morning session on Friday, while T-bonds slipped in a choppy trade. Cash bonds were traded in a tight range after recovering in the previous two sessions on unclear outlook on regulator's deleverage policy and loose liquidity in the near term. Market is still looking for direction as the MLF is about to mature next week.

Stock Market
1. U.S. Equities
Wall Street stocks closed on a high note Friday, with the S&P 500 index posting its best gain in six sessions on the heels of a U.S. payrolls report that gave investors more confidence in the strength of the U.S. Economy. The Dow Jones Industrial Average rose 94.3 points, or 0.44 percent, to end at 21,414.34, the S&P 500 gained 15.43 points, or 0.64 percent, to 2,425.18 and the Nasdaq Composite added 63.62 points, or 1.04 percent, to 6,153.08.

2. Hong Kong Equities
Hong Kong stocks followed most Asian markets lower on Friday, and posted their biggest weekly loss in four months, as growing concerns about policy tightening by the world's central banks weighed on global bourses. The Hang Seng dropped 0.5 percent to 25,340.85 points, and was down 1.6 percent for the week. T

3. China Equities
The Shanghai Composite Index extended gains to an over 2-1/2-month high, paring early losses boosted by heavyweights. The index crossed below 3,200 and hit the 10-day moving average during one point. The benchmark index closed up 5.52 points or 0.17 percent to 3,217.96. For the week, it closed up 0.80 percent.