TOKYO -- Asian shares traded mixed Friday ahead of a highly anticipated U.S. jobs report that’s expected to influence how the U.S. Federal Reserve will move on interest rates.

Trading sentiment in Asia was cautious due to lingering concerns about a potential recession in the U.S. economy. The upcoming job market report, scheduled for release later in the day, is considered a significant indicator, potentially determining the magnitude of the Federal Reserve's interest rate cut at its upcoming meeting later this month.

After maintaining its key interest rate at a two-decade high to combat inflation, the Federal Reserve has hinted at a potential shift towards reducing rates to prevent the economy from entering a recession.

Japan's benchmark Nikkei 225 index remained relatively unchanged in morning trading, registering a gain of less than 0.1% to 36,657.79. Australia's S & P/ASX 200 index increased by 0.6% to 7,998.00, while South Korea's Kospi index fell by 1.8% to 2,529.31. The Shanghai Composite gained 0.3% to 2,797.15. Trading was suspended in Hong Kong due to an approaching typhoon.

On Wall Street, most stocks experienced declines on Thursday following the release of a mixed set of economic data. The S & P 500 index decreased by 0.3% for the third consecutive day, while the Dow Jones Industrial Average lost 219 points, or 0.5%.

The Nasdaq composite index outperformed other major market indexes, gaining 0.3% due to gains in Tesla and several other large technology stocks.

Treasury yields also showed a slight dip in the bond market following the release of mixed economic reports. One report suggested that U.S. companies reduced their hiring last month, failing to meet forecasts. However, another report found that fewer U.S. workers filed for unemployment benefits last week than expected.

A separate report indicated that businesses in the financial, healthcare, and other service sectors experienced stronger growth than anticipated last month.

The yield on the 10-year Treasury bond decreased to 3.73% from 3.76% late Wednesday. This represents a substantial decline from the 4.70% recorded in April.

The 2-year Treasury note yielded 3.74%, slightly higher than the 10-year yield.

Verizon’s shares declined by 0.4% after the company announced its acquisition of Frontier Communications in a $20 billion deal aimed at enhancing its fiber network. Tesla's stock surged 4.9% following the company's presentation of its roadmap for upcoming artificial intelligence advancements, including the potential for fully autonomous driving in Europe and China.

Overall, the S & P 500 index declined by 16.66 points, ending the day at 5,503.41. The Dow Jones Industrial Average dropped 219.22 points to close at 40,755.75, while the Nasdaq composite rose 43.36 points to settle at 17,127.66.

In the energy markets, the price of U.S. benchmark crude oil increased by 11 cents to reach $69.26 per barrel. Brent crude, the global benchmark, also saw an 11-cent rise, closing at $72.80 per barrel.

The U.S. dollar weakened slightly against the Japanese yen, trading at 143.22 yen compared to the previous day's 143.40 yen. The euro held steady against the dollar, trading at $1.1113, almost unchanged from $1.1112.

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AP Writer Stan Choe contributed. Yuri Kageyama can be found on X: https://x.com/yurikageyama