30 C
Friday, June 14, 2024

Asian markets mixed following hotter-than-expected US jobs report

- Advertisement -
- Advertisement -

Hong Kong, June 10: Asian markets were mixed on Monday after a jobs report released Friday came in hotter than expected, while the euro fell after French President Emmanuel Macron dissolved the National Assembly following a setback in Sunday’s parliamentary election.

US futures and oil prices rose.

- Advertisement -

Trading in Asia was muted with markets in China, Hong Kong, Australia and Taiwan closed for holidays.

In Tokyo, the Nikkei 225 index was up 0.5 per cent at 38,872.19 after government data on Monday showed Japan’s economy contracted at an annualised 1.8 per cent pace in January-March compared to the previous quarter, an upward revision from the previously announced 2 per cent drop.

South Korea’s Kospi slipped 0.7 per cent to 2,705.06.

Meanwhile, in Europe, far-right parties made major gains in parliamentary elections Sunday, leading French President Emmanuel Macron to announce that he was dissolving the National Assembly and calling a snap legislative election.                  This caused the euro to drop to its lowest price in nearly a month. On Monday dealing, the euro was trading at USD 1.0766, down from USD 1.0778.

- Advertisement -

On Friday, the S&P 500 fell 0.1 per cent to 5,346.99, the Nasdaq composite slipped 0.2 per cent to 38,798.99, and the Dow Jones Industrial Average slipped 0.2 per cent to 38,798.99.

US employers added 272,000 jobs in May, up from April and more than economists expected. The report also showed the unemployment rate rising for a second straight month.

Overall, it signals continued strength in the jobs market, with some minor signs of weakening. The strong jobs market has supported consumer spending and the broader economy, but it has also been complicating the Federal Reserve’s path ahead for interest rates.

The yield on the 10-year Treasury jumped to 4.43 from 4.29 per cent just before the jobs report was released. The two-year yield, which more closely tracks expectations for the Fed, jumped to 4.89 from 4.74 per cent prior to the report’s release.

- Advertisement -

Wall Street is hoping for at least one cut to the Fed’s benchmark interest rate before the year ends. The central bank raised its interest rate to its highest level in more than two decades in an attempt to cool inflation to its target of 2 per cent.

However, inflation has been stubbornly hovering around 3 per cent after dropping sharply over the last two years. A strong economy could keep fuelling price increases.

A cooler economy can pull inflation lower and prompt the Fed to deliver the cuts to interest rates that traders desire. The danger is if the slowdown overshoots and turns into a recession, which would ultimately hurt stock prices.

Economic data from last week hinted that the economy could be cooling.               The latest reports show that manufacturing contracted in May, worker productivity isn’t as strong as economists thought and job openings are dropping.

Fed officials are expected to hold interest rates steady at their meeting later in this week. After the jobs report came out, investors took even more bets off the table that the Fed would cut rates at its July meeting, according to data from CME Group.

Wall Street has also been monitoring earnings from retailers, which have shown that customers have been pulling back on items that aren’t essentials. Consumer spending has been the main support for the economy, but stubborn inflation is hurting consumers, especially those with lower incomes.

GameStop, the troubled video game retailer at the centre of the meme stock craze, slumped 39.4 per cent after reporting another quarterly loss and saying it planned to sell up to 75 million more shares.

In other dealings, US benchmark crude oil gained 23 cents to USD 75.76 per barrel in electronic trading on the New York Mercantile Exchange.

Brent crude, the international standard, was up 28 cents to USD 79.90 per barrel.

The US dollar rose to 157.12 Japanese yen from 156.83 yen. (AP)



- Advertisement -
The Hills Times
The Hills Timeshttps://thehillstimes.in/
Welcome to The Hills Times, your trusted source for daily news and updates in English from the heart of Assam, India. Since our establishment in 2000, we've been dedicated to providing timely and accurate information to our readers in Diphu and Guwahati. As the first English newspaper in the then undemarcated Karbi Anglong district, we've forged a strong connection with diverse communities and age groups, earning a reputation for being a reliable source of news and insights. In addition to our print edition, we keep pace with the digital age through our website, https://thehillstimes.in, where we diligently update our readers with the latest happenings day by day. Whether it's local events, regional developments, or global news, The Hills Times strives to keep you informed with dedication and integrity. Join us in staying ahead of the curve and exploring the world through our lens.
Latest news
- Advertisement -
Related news
- Advertisement -
Superfood In Your Diet: 9 Incredible Health Benefits Of Guava 10 Unforgettable Monsoon Destinations In South India 7 Most Beautiful Islands To Visit In India This Summer Top 10 Tourist Places In India During Monsoon 5 Most Beautiful Boarding Schools In India