China's exports probably expanded at a faster pace in December, suggesting producers raced to move inventory to major markets ahead of U.S. President-elect Donald Trump's return to the White House this month and fresh trade risks.

China's central bank said on Friday it has suspended treasury bond purchases, triggering a jump in yields and spurring speculation that the move was aimed at defending a falling currency.

U.S. job growth likely slowed to a still-healthy clip in December while the unemployment rate held steady at 4.2%, reinforcing the Federal Reserve's cautious approach toward interest rate cuts this year.

The dollar held steady in Asia on Friday and looked set to extend its longest weekly winning streak in over a year, underpinned by rising bond yields and expectations of another strong set of U.S. jobs numbers.

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to stimulate the economy and soften the blow of impending U.S. tariff hikes, but in doing so it risks quickly exhausting its firepower.

Chinese investors are buying up large amounts of Hong Kong mutual fund products that invest overseas, particularly in bonds, after authorities expanded a cross-border trading channel this month and opened an avenue to get better yields.