Asian shares fall ahead of US jobs report
Shares fell across Asia on Tuesday, while U.S. futures also declined ahead of key U.S. employment and inflation reports that could influence the future path of interest rates.
In Japan, the Nikkei 225 slid 1.2% to 49,544.21 after preliminary factory data pointed to a slight slowdown in manufacturing activity, News.Az reports, citing AP.
The S&P Global Flash purchasing managers index rose to 49.7 in November from 48.5 the previous month, remaining just below the 50 level that signals expansion.
Investors are closely monitoring Japanese economic indicators ahead of a Bank of Japan policy meeting scheduled for Friday. The meeting is widely expected to result in an interest rate hike, a move that could unsettle global bond markets and cryptocurrencies.
Chinese markets also moved lower following weaker-than-expected November data released on Monday. Retail sales increased just 1.3% year-on-year, marking their slowest pace since 2022, when the economy was affected by the pandemic. Data also showed declines in lending and investment activity.
“Overall, the data set confirms a loss of momentum into the year-end and is consistent with our growth forecasts moderating to around 4% in the final quarter of this year,” Tan Boon Heng of Mizuho Bank said in a research note.
Elsewhere in the region, Hong Kong’s Hang Seng Index fell 1.9% to 25,139.16, while China’s Shanghai Composite dropped 1.2% to 3,820.85.
South Korea's Kospi gave up 1.5% to 4,027.83, while the Taiex in Taiwan lost 1.1%.
Australia's S&P/ASX 200 shed 0.6% to 8,583.00.
Shares in Roomba maker iRobot sank 9.3% in after hours trading after the company filed for Chapter 11 bankruptcy protection. That was on top of a nearly 73% decline on Monday. The company know for its robotic vacuums has struggled with increased competition but said it doesn’t expect any disruptions to its devices as it is taken private under a restructuring process.
On Monday, the S&P 500 slipped 0.2% to 6,816.51, though the majority of stocks within the index rose. The Dow Jones Industrial Average dipped 0.1% to 48,416.56, and the Nasdaq composite fell 0.6% to 23,057.41.
Artificial-intelligence -related stocks, which were mixed following last week’s swings, helped keep gains in check.
Nvidia, the chip company that’s become the face of the AI boom, added 0.7%. But Oracle sank another 2.7% following its 12.7% tumble last week, its worst in more than seven years. Broadcom fell 5.6%.
AI stocks have wobbled on worries that the billions of dollars flowing into chips and data centers may not yield a big-enough payoff.
The main focus on Wall Street this week, apart from AI, will be several big updates on the U.S. economy.
Economists expect the jobs report from November, due Tuesday, to show employers added 40,000 more jobs than they cut during the month. An update on inflation Thursday is forecast to show U.S. consumers paid prices that were 3.1% higher in November than a year before.
Investors are hoping that the job market will weaken by just enough to get the Federal Reserve to lower interest rates, but not so much that the economy slips into recession. Lower rates help boost the economy and prices for investments, but also may worsen inflation.
Economists expect Tuesday’s report to show the unemployment rate at 4.4%, which would keep it near its highest and worst level since 2021.
In other dealings early Tuesday, U.S. benchmark crude oil lost 32 cents to $56.50 per barrel. Brent crude, the international standard, fell 33 cents to $60.23 per barrel.
The U.S. dollar slipped to 154.81 Japanese yen from 155.21 yen. The euro fell to $1.1753 from $1.1755.
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