sunny.png
Thursday December 5th, 2019 9:49AM

Asian stocks sink after US jobs data hurt hopes of rate cut

By The Associated Press
Related Articles
  Contact Editor

BEIJING (AP) — Asian stocks tumbled Monday after relatively strong U.S. employment data tempered hopes the Federal Reserve might cut interest rates.

Benchmarks in Shanghai, Tokyo, Seoul and Hong Kong all declined.

Fed leaders have said they are ready to cut rates to support economic growth amid a tariff war with Beijing. But Friday's stronger-than-expected data on June job creation prompted questions about whether the Fed might still think that is needed.

Those data "have many questioning whether we will see just two rate cuts in 2019 and not what some call the required three" to push U.S. stocks higher, said Edward Moya of OANDA in a report.

Trade data due out this week and Fed chairman Jerome Powell's testimony to Congress on Wednesday "will likely highlight the effects of the trade war and should support the calls for additional stimulus globally," said Moya.

The Shanghai Composite Index fell 2.3% to 2,940.75 and Tokyo's Nikkei 225 lost 0.9% to 21,548.36. Hong Kong's Hang Seng retreated 1.7% and Seoul's Kospi declined 2% to 2,068.24.

Sydney's S&P-ASX 200 gave up 1% to 6,679.70 while Taiwan and Southeast Asian markets also declined. New Zealand advanced.

Wall Street fell Friday after the Labor Department said employers added 224,000 jobs in June. That was better than forecast and a rebound from May's disappointing weaker-than-expected job creation.

The benchmark Standard & Poor's 500 index lost 0.2% to 2,990.41. The Dow Jones Industrial Average dropped 0.2% to 26,922.12. The Nasdaq composite slid 0.1% to 8,161.79.

The Fed holds its next policymaking meeting at the end of the month. The panel will reveal whether it has decided to cut rates for the first time since the Great Recession in 2008 in the face of slowing economic momentum around the world.

Last year, Fed officials raised rates four times, in part to stave off the risk of high inflation and in part to try to ensure that they would have room to cut rates if the economy stumbled.

On Friday, the Fed emphasized it would act as necessary to sustain the economic expansion, while noting most Fed officials have lowered their expectations for the course of rates. The Fed's statement came in its semiannual report on monetary policy.

ENERGY: Benchmark U.S. crude lost 8 cents to $57.59 per barrel in electronic trading on the New York Mercantile Exchange. The contract advanced 17 cents on Friday to close at $57.51. Brent crude, used to price international oils, shed 1 cent to $64.22. It rose 93 cents the previous session to $64.23.

CURRENCY: The dollar declined to 108.40 yen from Friday's 108.47 yen. The euro was unchanged at $1.1225.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Asian stocks sink after US jobs data hurt hopes of rate cut
Asian stocks decline after robust US employment data temper hopes Fed might cut rates
11:38PM ( 22 minutes ago )
US men fail to follow women, lose Gold Cup final to Mexico
U.S. men failed to follow the example of American women, showing just how far they are from success
11:24PM ( 35 minutes ago )
Big rain and big wreck lead to Haley's 1st career Cup win
Teeth chattering, hands shaking, stomach churning, Justin Haley anxiously waited for NASCAR to pull the plug on a rain-wrecked weekend at Daytona International Speedway, but ended up winning the postponed and shortened race
10:56PM ( 1 hour ago )
Associated Press (AP)
Quakes push Californians to prepare for the next big jolt
Residents are cleaning up from two of the biggest earthquakes to rattle California in decades as scientists warn they should serve as a wake-up call to be ready when the long-dreaded "Big One" strikes
9:42PM ( 2 hours ago )
The Latest: Greece's left-wing leader concedes election
Greek conservative opposition leader Kyriakos Mitsotakis has comfortably won parliamentary elections, delivering a stinging blow to leftist Prime Minister Alexis Tsipras after a tumultuous four years in office
9:30PM ( 2 hours ago )
Tens of thousands in Hong Kong take message to mainlanders
Protesters in Hong Kong take their message to visitors from mainland China
8:54PM ( 3 hours ago )
AP Business
The Latest: Vote projections show new party governing Greece
Official election projections in Greece show the opposition New Democracy party winning 39.8% of the vote compared to the governing Syriza party's 31.6%
2:04PM ( 9 hours ago )
The Latest: Greek minister says governing party lost vote
Greek Finance Minister Euclid Tsakalotos says the conservative opposition New Democracy party won a general election
1:48PM ( 10 hours ago )
The Latest: Exit polls give conservative Greek election win
Exit polls in Greece's general election indicate conservative opposition leader Kyriakos Mitsotakis has won a comfortable victory over left-wing Prime Minister Alexis Tsipras
12:13PM ( 11 hours ago )
AP Business - Economy
Trump pick for Fed says she does not want to harm investors
Judy Shelton, Trump pick for Fed board, says she does not want to tighten credit and harm ordinary investors
4:16PM ( 2 days ago )
US stocks head lower as jobs surge dims hopes for a rate cut
U.S. stocks are edging lower and bond yields are up as Wall Street closes in on a downbeat finish to an otherwise solid week of gains for the broader market
3:29PM ( 2 days ago )
US stocks fall as hiring pickup dims hopes for a rate cut
Stocks fell broadly and bonds rose on Wall Street in midday trading Friday after the government reported a strong pickup in hiring last month, complicating the Federal Reserve's decision later this month on whether to lower interest rates
11:51AM ( 2 days ago )
AP Business - Financial Markets
Deutsche Bank to slash 18,000 jobs in sweeping restructuring
Germany's biggest bank, Deutsche Bank, has announced a restructuring plan that will see it shed its equities sales and trading business as it tries to improve profitability and raise its share price
12:24PM ( 11 hours ago )
Iran to raise uranium enrichment beyond nuclear deal limits
Iran announces it is raising level of uranium enrichment, breaking another limit of 2015 nuclear deal, but says it remains open to diplomacy to save the agreement
10:26AM ( 13 hours ago )
Iran poised to raise its uranium enrichment amid tensions
Iran appears poised to raises its enrichment of uranium and break another limit from its faltering 2015 nuclear deal with world powers
11:44PM ( 1 day ago )
AP Business - Industries
US adds solid 224,000 jobs; Fed rate cut may be less certain
US employers added robust 224,000 jobs in June, with unemployment rate rising slightly to 3.7%
2:58PM ( 2 days ago )
Fed repeats pledge to act to sustain economic expansion
Federal Reserve, noting more 'downbeat' information since May, repeats pledge to sustain expansion
11:29AM ( 2 days ago )
US added a robust 224,000 jobs in June after weak May gain
US employers added robust 224,000 jobs in June, with unemployment rate rising slightly to 3.7%
8:57AM ( 2 days ago )
AP Business - Financial Services
US men fail to follow women, lose Gold Cup final to Mexico
U.S. men failed to follow the example of American women, showing just how far they are from success
11:24PM ( 36 minutes ago )
Big rain and big wreck lead to Haley's 1st career Cup win
Teeth chattering, hands shaking, stomach churning, Justin Haley anxiously waited for NASCAR to pull the plug on a rain-wrecked weekend at Daytona International Speedway, but ended up winning the postponed and shortened race
10:56PM ( 1 hour ago )
All-Star Futures Game ends in 2-2 tie after 8 innings
All-Star Futures Game ends in 2-2 tie, provides glimpse of tiebreaker
10:44PM ( 1 hour ago )
Rapinoe fuses politics, pay and tech with World Cup win
A Women's World Cup stirred by heated debates on politics, pay and technology saw the narratives fused in the final by the undisputed star of the tournament
10:43PM ( 1 hour ago )
DHS official defends conditions at Border Patrol stations
Acting Homeland Security Secretary Kevin McAleenan defended conditions at U.S. Border Patrol stations following reports of unsanitary conditions
9:55PM ( 2 hours ago )