Asian shares, US futures sink ahead of US jobs report
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Article contentNEW YORK (AP) — Shares tumbled Tuesday in Asia and U.S. futures also fell ahead of the release of U.S. employment and inflation reports that could drive the direction of interest rates.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentTokyo’s Nikkei 225 declined 1.2% to 49,544.21 as preliminary factory data showed manufacturing slowing slightly. The S&P Global Flash purchasing managers index rose to 49.7 from 48.5 in November on a scale of up to 100 where 50 marks the cut off for expansion.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentInvestors are watching Japanese data carefully ahead of a Bank of Japan policy meeting on Friday that is widely expected to result in an interest rate hike that could rattle world bond and cryptocurrency markets.Article contentArticle contentChinese markets also retreated after data for November, released Monday, came in weaker than expected. Retail sales rose at their slowest rate since 2022, during the pandemic, at 1.3% from a year earlier in November. Lending and investment also weakened.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Overall, the data set confirms a loss of momentum into (the) year-end and is consistent with our growth forecasts that moderating to around 4%” in the last quarter of this year, Tan Boon Heng of Mizuho Bank said in a report.Article contentHong Kong’s Hang Seng dropped 1.9% to 25,139.16, while the Shanghai Composite index lost 1.2% to 3,820.85.Article contentSouth Korea’s Kospi gave up 1.5% to 4,027.83, while the Taiex in Taiwan lost 1.1%.Article contentAustralia’s S&P/ASX 200 shed 0.6% to 8,583.00.Article contentShares 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.Article contentArticle contentOn 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.Article contentArtificial-intelligence -related stocks, which were mixed following last week’s swings, helped keep gains in check.Article contentNvidia, 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%.Article contentAI stocks have wobbled on worries that the billions of dollars flowing into chips and data centers may not yield a big-enough payoff.Article contentThe main focus on Wall Street this week, apart from AI, will be several big updates on the U.S. economy.Article contentEconomists 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.Article contentInvestors 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.Article contentEconomists expect Tuesday’s report to show the unemployment rate at 4.4%, which would keep it near its highest and worst level since 2021.Article contentIn 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.Article contentThe U.S. dollar slipped to 154.81 Japanese yen from 155.21 yen. The euro fell to $1.1753 from $1.1755.Article content___Article contentAP Business Writer Stan Choe contributed.Article contentTrending The Federal Reserve’s rate cut was a clear signal to investors Investor Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.
The Federal Reserve’s rate cut was a clear signal to investors Investor Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance McKinsey plots thousands of layoffs in consulting slowdown Work Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News Bank of Canada expected to hold interest rate steady through 2026 as inflation cools Economy