GLOBAL MARKETS-Stocks bide time before jobs report, tariff ruling

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Supreme Court ruling on tariffs could spur volatility

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Jobs report in focus with Fed seen on hold for now

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Dollar grinds higher, stocks wobble as markets tread water

(Updates to Asia afternoon)

By Ankur Banerjee

SINGAPORE, Jan 9 (Reuters) - Asian stocks drifted lower and the dollar firmed on Friday ahead of a crucial jobs report, while investors girded for a Supreme Court ruling on the legality of President Donald Trump's sweeping global tariffs that jolted markets last year.

Simmering geopolitical tensions across the globe boosted oil prices, as well as ?defence stocks, and will remain in traders' minds as they weigh developments in Venezuela since U.S. forces captured Venezuelan President Nicolas Maduro on Saturday.

Much of the focus on Friday will be on the ?possible U.S. Supreme Court ruling on tariffs. Striking down the tariffs could impact government revenue, pushing Treasury yields higher and unleashing new waves of volatility ?across markets.

Kyle Rodda, senior financial markets analyst at Capital.com, said the Supreme Court ruling is the "real wildcard" for ?markets on Friday, noting that if the ?courts slap down U.S. tariffs, it would be a big boost to market sentiment.

"A constraint may be that even if the tariffs are ruled unlawful, the Trump administration is unlikely to roll ?over and will look to other ways to maintain the levies."

For now, traders ?remain reluctant to place bets ahead of the market-moving events. MSCI's broadest index of Asia-Pacific shares outside Japan swung between gains and losses and was down 0.2%, just below the record high it hit earlier in the week. European stock futures rose ?0.34%.

Japan's Nikkei surged 1.5%, buoyed by the strong earnings and forecast from ?Fast Retailing, the ?operator of the Uniqlo clothing brand.

The S&P 500 ended flat on Thursday, although an aerospace and defence index rose to an all-time high, with European defence shares also hitting a new high. S&P 500 futures were steady in Asian hours.

U.S. JOBS REPORT ON DECK

U.S. data ?on Thursday showed demand for labour remained sluggish, with businesses squeezing more output from their existing workforce, sharpening the focus on December's employment report on Friday. The report is expected to show that the labour market is stuck in what economists and policymakers have called a "no hire, no fire" mode.

Nonfarm payrolls probably increased by 60,000 jobs last month after rebounding by 64,000 in November, a Reuters survey of economists estimated. The economy lost 105,000 jobs in October, the largest decrease in nearly five years, mostly federal government employees who took deferred buyouts.

Traders are pricing in at least two rate cuts from the Federal ?Reserve this ?year, although a divided central bank indicated in December there would be only one cut. The Fed is expected to keep rates steady at its meeting this month.

"We'd need a big downside surprise from the jobs data to really get the markets moving," said ?Rodda. "That's because a solid print would reassure investors that the U.S. labour market remains in a solid position and a slight miss will just raise the odds of more rate cuts."

The yield on benchmark U.S. 10-year notes stood at 4.177% after gaining 4.5 basis points in the previous session. The dollar index, which measures the U.S. currency against six other units, hovered around a one-month high against major currencies.

Treasury Secretary Scott Bessent said on Thursday he expected Trump to make a decision soon on who would replace Jerome Powell as the Fed chair's term ends in May, with markets expecting the president to appoint a dovish candidate.

Oil prices extended their gains on Friday, sitting ?near a two-week high as investors contended with developments in Venezuela and worried about supplies from Russia, Iraq and Iran.

Foreign embassies in Venezuela are beginning to arrange visits for next week that will include representatives for U.S. and European oil companies, two sources told Reuters, following Washington's announcement of a $2 billion oil deal and the supply of U.S. goods to the South American country.

Brent futures ?rose 0.8% to $62.49 per barrel, while U.S. West Texas Intermediate (WTI) crude advanced 0.8% to $58.25. (Reporting by Ankur Banerjee in Singapore; Editing by Michael Perry and Shri Navaratnam)