Asian Stocks Slip After US Jobs Data, Oil Rises: Markets Wrap
MSCI’s regional equities gauge dropped 0.1%, extending its losses to a third consecutive day.
Asian stocks posted a modest decline at the open after sluggish US jobs data did little to boost bets on further interest-rate cuts from the Federal Reserve.
MSCI’s regional equities gauge dropped 0.1%, extending its losses to a third consecutive day. That’s after the S&P 500 also fell for a third day Tuesday, while the Nasdaq 100 added 0.3%. Tesla Inc. shares fell more than 1% in extended trading after the company’s sales in California were poised to be suspended for 30 days. Treasuries steadied along with the dollar after slipping during US trading.
West Texas Intermediate crude oil rose more than 1% after President Donald Trump said he was ordering a "total and complete blockade of all sanctioned oil tankers" going into and leaving Venezuela.
Nonfarm payrolls increased 64,000 in November after declining 105,000 in October amid a contraction in federal employment. The unemployment rate was 4.6% last month, up from 4.4% in September and the highest since 2021.
The US central bank is seen as less likely to put much weight on the data due to disruptions caused by the US government shutdown. Traders assigned a 20% chance of a rate reduction in January. Investors will now focus on inflation data due Thursday and remarks from several Fed officials who are expected to speak throughout the week.
"While the labor market reports were soft, the data need to be treated with caution following the government shutdown," said ANZ Group Holdings Ltd. analysts Brian Martin and Daniel Hynes. "Uncertainty surrounding the timing of the FOMC’s next move is unlikely to be resolved until the data flow normalises next year."
A separate report out on Tuesday showed retail sales were little changed in October as a decline at auto dealers and weaker gasoline receipts offset stronger spending in other categories. And figures from S&P Global showed US business activity expanded in December at the slowest pace in six months, while a measure of input prices jumped to a more than three-year high.
Traders assigned a 20% chance of a rate reduction in January
Signs the US jobs market is sluggish, but not quickly deteriorating saw traders refraining from boosting bets on near-term rate cuts.
Meanwhile, the Trump administration has also threatened retaliation against the European Union in response to efforts to tax American tech companies, singling out prominent companies, including Accenture Plc, Siemens AG and Spotify Technology SA, as possible targets for new restrictions or fees.
In Asia, investors will be focused on Chinese stocks in Hong Kong after they neared key bearish technical levels on Tuesday as fading tech gains and renewed economic growth concerns fueled a sharp selloff. A gauge of Chinese shares listed in the US fell for a fourth straight day.
Corporate Highlights:
Warner Bros. Discovery Inc. is planning to reject Paramount Skydance Corp.’s hostile takeover bid due to concerns about financing and other terms, people familiar with the matter said.
China Vanke Co. unveiled a revised bond-extension proposal for creditors to vote on, as the distressed developer makes another attempt to gain support for a plan to avert default.
China’s Luckin Coffee Inc. is considering making a bid for Nestle SA’s Blue Bottle Coffee to boost its brand profile and expand in the premium coffee segment
SBI Shinsei Bank Ltd. will start trading in Tokyo on Wednesday after raising ¥322 billion ($2.1 billion) in Japan’s second-biggest initial public offering of the year.
Treasury Wine Estates Ltd. announced a company-wide overhaul, including asset sales and cost cuts, as the Penfolds producer tackles weakening demand in its key markets.
Key Events This Week
Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.2% as of 9:13 a.m. Tokyo time
Hang Seng futures fell 0.1%
Japan’s Topix fell 0.3%
Australia’s S&P/ASX 200 fell 0.4%
Euro Stoxx 50 futures fell 0.6%
Currencies
The Bloomberg Dollar Spot Index was little changed
The euro was little changed at $1.1746
The Japanese yen was little changed at 154.85 per dollar
The offshore yuan was little changed at 7.0357 per dollar
The Australian dollar was little changed at $0.6629
Cryptocurrencies
Bitcoin was little changed at $87,669.79
Ether rose 0.2% to $2,956.27
Bonds
The yield on 10-year Treasuries was little changed at 4.15%
Japan’s 10-year yield was unchanged at 1.950%
Australia’s 10-year yield was little changed at 4.73%
Commodities
West Texas Intermediate crude rose 1.6% to $56.14 a barrel
Spot gold rose 0.2% to $4,312.52 an ounce
