According to Bloomberg, Japanese stocks experienced a significant decline for the second consecutive day due to expectations of further monetary tightening in the country. This decline is part of a broader global selloff triggered by weak US economic data and disappointing tech earnings.

The outlook for Japan's central bank to hike rates further has kept investors on edge. Earlier this week, the central bank's actions have led to increased speculation about future rate hikes. A survey of 41 economists revealed that 68% expect additional rate increases. This uncertainty has contributed to a risk-off sentiment in the markets, with many economic factors converging to support a shift away from risk assets.

In the US, Treasuries advanced again on Friday, with the 10-year yield extending its decline below 4%. The two-year note also saw its yields fall by two basis points, adding to the 11 basis-point drop from the previous day. The yen, which had rallied for three days, snapped its gains and settled around 149 per dollar. Meanwhile, the British pound slid on Thursday following the Bank of England's recent actions.

Economists are anticipating a moderation in job growth in the US government's July employment report, which is due on Friday. Forecasters expect the unemployment rate to remain steady at 4.1%. The labour market has been showing warning signals over the past several months, adding to the overall economic uncertainty.

Elsewhere in Asia, a Chinese central bank policy adviser commented on the situation, although specific details were not provided. In the commodities market, oil prices rose after a decline on Thursday, driven by concerns that Middle East tensions could impact supply. Gold prices wavered near record levels, reflecting the ongoing market volatility.