MANILA, Philippines (AP) – On Friday, Asian shares experienced an uptick following a remarkable ascent in U.S. stocks, which reached an all-time high. This surge occurs as Wall Street gears up for a crucial update on the American job market that may pave the way for interest rate cuts, a prospect that excites investors.

In Tokyo, the Nikkei 225 index rose by 0.9%, reaching 42,945.16. This increase comes after statistics released on Friday revealed that Japan's labor cash earnings increased by 4.1% year-on-year in July, a notable rise from 3.1% in June. Furthermore, a separate report indicated that household spending grew by 1.4% in July compared to the previous year, marking a growth trend for the third consecutive month.

Additionally, President Donald Trump signed an executive order on Thursday that implements a U.S.-Japan trade deal, which includes lower tariffs on Japanese car imports.

In Chinese markets, the Hang Seng index in Hong Kong climbed 0.5%, reaching 25,194.85, while the Shanghai Composite index increased by 0.4% to settle at 3,778.95. South Korea's Kospi saw a slight uptick of less than 0.1%, ending at 3,203.13, and Australia's S&P/ASX 200 index rose by 0.3%, closing at 8,855.20. India's BSE Sensex was up by 0.2%, and Taiwan's Taiex experienced a surge of more than 1%.

U.S. stock futures also reflected a positive outlook, although oil prices saw a minor decline. On Wall Street, the S&P 500 index added 0.8%, surpassing the all-time high established the previous week. The Dow Jones Industrial Average increased by 350 points, or 0.8%, while the Nasdaq composite saw a gain of 1%.

The rise in stocks was partially attributed to reduced pressure from the bond market, where Treasury yields fell following various reports regarding the U.S. job market that indicated weaker-than-expected performance. One report suggested that private employers nearly halved their hiring numbers in August compared to July, while another indicated that an increasing number of workers applied for unemployment benefits, signaling possible rises in layoffs.

Despite these concerning indicators, none are announcing a recession, as a third report revealed stronger-than-anticipated growth in activity within the business sectors related to information and various services.

For investors, the implications of a slowing job market could potentially lead to the Federal Reserve initiating interest rate cuts for the first time this year during its upcoming meeting. Such measures may rejuvenate the economy and job market but could also accelerate inflation. Throughout this year, the Fed has maintained a steady interest rate due to concerns over escalating inflation linked to Trump's tariffs, overshadowing worries about the labor market.

A more detailed report regarding the health of the job market in August is expected to be released by the U.S. Labor Department on Friday and is likely to hold significant importance for the Federal Reserve. In anticipation, the yield on the 10-year Treasury bond fell to 4.16%, down from 4.22% late the previous Wednesday.

In other financial updates on Friday, benchmark U.S. crude oil prices decreased by 13 cents to settle at $63.35 per barrel, while Brent crude, the international benchmark, fell by 11 cents to $66.88 per barrel. The U.S. dollar slipped to 148.13 Japanese yen from 148.05, while the euro rose to $1.1672 from $1.1654.

AP Business Writer Stan Choe in New York contributed to this report.