Bangkok (AP) – The shares in Asia were mixed after Wall Street had the worst day since May after the release of weak American baneng data.
Markets in Asia had already responded on Friday to the announcement of US President Donald Trump of major rates for the import of many US trading partners, with moderate losses. The new rates will take effect on Thursday.
The Nikkei 225 index of Tokyo lost 1.6%and bounced back from larger losses to 40,134.97.
The Hang Seng in Hong Kong was 0.2% higher, up to 24,589.21, while the Shanghai Composite index was almost unchanged at 3,562.18.
In South Korea, the Kospi rose 0.7% to 3,140.92.
The S&P/ASX 200 of Australia throws 0.2% to 8,643.00.
The concerns of investors about a weakening US economy became deeper after the last report on job growth in the US showed that employers have added only 73,000 jobs in July. That is sharply lower than the expected economists. The labor department also reported that revisions a stunning 258,000 jobs of May and June wage lists.
“The labor market, once a pillar of resilience, now looks more like a victim in the late cycle, because soft data is starting to replace soft landings in the market discourse,” said Stephen Innes or Spi Asset Management in a comment.
However, the American futures were 0.3% higher, but asked on Monday.
On Friday, the S&P 500 fell 1.6%, the largest decrease since May 21 and the fourth consecutive loss. It closed at 6,238.01 and placed a loss of 2.4% for the week.
The industrial average of Dow Jones fell 1.2% to 43,588.58, while the Nasdaq composite fell by 2.2% to end at 20,650.13.
Internet Retail Giant Amazon fell by 8.3%, despite reporting encouraging profit and turnover for the most recent quarter. Technology Kolos Apple fell by 2.5% after he also defeated Wall Street's profit and turnover forecasts. Both companies are confronted with harder operating conditions due to rates, where Apple predicts a hit of $ 1.1 billion of the costs in the current quarter.
Trump's decision to order the immediate dismissal of the head of the government agency that produces the monthly job figures, released their concern about whether there could be interference in future data.
The surprisingly weak recruitment numbers led investors to increase their expectations. The Federal Reserve can lower the interest rates in September.
The return on the 10-year treasury fell to 4.21% of 4.39% just before the recruitment report was released. That is a big step for the bond market. The return on the two-year treasury, which better keeps up with the expectations for FED actions, fell to 3.68% of 3.94% just before the release of the report.
The Fed has kept the rates steadily since December. A reduction in rates would give the labor market and the overall economy a boost, but it can also run the risk of feeding inflation, which stubbornly fluctuates the objective of the central bank.
