Asian stocks down after weak US jobs, as Trump trip in focus

FILE: (Pixabay photo)

SEOUL, Korea, Republic Of — Asian markets slipped on Monday as weaker-than-expected U.S. jobs figures dented sentiment. Investors were also keeping an eye on President Donald Trump’s visit to Asia, where he is expected to discuss North Korean nuclear issues with leaders in the region.

KEEPING SCORE: Japan’s Nikkei 225 finished flat at 22,548.35, while South Korea’s Kospi dropped 0.3 per cent to 2,549.41. Hong Kong’s Hang Seng index dipped 0.2 per cent to 28,543.99, but the Shanghai Composite Index added 0.5 per cent to 3,388.17. Australia’s S&P/ASX 200 dipped 0.1 per cent to 6,055.85. Stocks in Southeast Asia were mixed.

TRUMP IN TOKYO: Trump is on his first presidential visit to Asia this week with Japan as his first stop. In his remarks to business leaders in Japan’s capital, Trump emphasized that the U.S. has massive trade deficits with Japan and that he hopes to turn that around. He also said his decision to pull the U.S. out of the Trans-Pacific Partnership trade deal will prove “to be right.” Trump is due to visit South Korea, China, Vietnam and the Philippines in coming days. While denuclearizing North Korea is to top his agenda during the visits, trade and business issues will also be discussed.

ANALYST’S TAKE: “While we have very light U.S. economic diary this week, there will be no lack of political bluster as the U.S. tax reform debate rages while Trump deals with North Korean nuclear ambitions and regional trade relations during his whirlwind tour of Asia,” Stephen Innes, head of trading at OANDA, said in a daily commentary. “But make no mistake the focus is squarely on North Korea headlines.”

U.S. JOBS: On Friday, U.S. employers added fewer-than-expected 261,000 jobs in October, and the unemployment rate dipped to 4.1 per cent, its lowest level in nearly 17 years. But wage growth was also weaker than economists forecast. Average hourly earnings were up 2.4 per cent from a year earlier, a slowdown from September’s 2.8 per cent rate. Analysts said the below-expectations jobs figures did not dent expectations for a Federal Reserve rate hike in December.

WALL STREET: U.S. stocks finished higher on Friday driven by technology stocks. The Standard & Poor’s 500 rose 0.3 per cent to 2,587.84. The Dow Jones industrial average advanced 0.1 per cent to 23,539.19 and the Nasdaq composite climbed 0.7 per cent to 6,764.44.

OIL: Benchmark U.S. crude rose 21 cents to $55.85 per barrel in electronic trading on New York Mercantile Exchange. The contract jumped $1.10 to settle at $55.64 per barrel on Friday, its highest settlement price since July 2015. Brent crude, the international standard, gained 38 cents to $62.45 per barrel. On Friday, it rose $1.45 to $62.07 per barrel.

CURRENCIES: The U.S. dollar strengthened to 114.36 Japanese yen from 114.05 yen while the euro fell to $1.1601 from $1.1609.