Asian stocks mixed on strong US hiring, OPEC oil output cuts
BEIJING (AP) — Asian stocks were mixed Thursday after strong U.S. hiring dampened hopes the Federal Reserve might ease off plans for interest rate hikes and the OPEC group of oil exporters agreed to output cuts to shore up prices.
Tokyo and Seoul advanced while Hong Kong and Sydney declined. Chinese markets were closed for a holiday. Oil prices edged higher.
Wall Street's benchmark lost 0.2% on Wednesday, ending a two-day rally, after payroll processor ADP said U.S. employers added 208,000 jobs in September, slightly more than expected. That showed some parts of the U.S. economy still are strong, giving ammunition to Fed officials who say more rate hikes are needed to cool inflation that is at a four-decade high.
“The economy is too strong for the Fed to pivot. The strong start to October is over,” Edward Moya of Oanda said in a report.
The Nikkei 225 in Tokyo rose 1% to 27,387.50 while the Hang Seng in Hong Kong lost 0.2% to 18,055.68.
The Kospi in Seoul surged 1.5% to 2,248.46 while Sydney's S&P ASX 200 edged less than 0.1% lower to 6,813.50.
New Zealand declined while Southeast Asian markets gained.
On Wall Street, the S&P 500 declined to 3,783.28. The benchmark was coming of its strongest two-day rally in 2 1/2 years.
The Dow Jones Industrial Average slipped 0.1% to 30,273.87. The Nasdaq composite slid 0.2% to 11,148.64.
Investors are hoping data that show the economy weakening will persuade the Fed and central banks in Europe and Asia to ease off rate hikes. They worry aggressive action to cool inflation might tip the global economy into recession, but forecasters say hopes central bankers will relent might be premature.
Wall Street is waiting for corporate results that will show how inflation is affecting businesses and consumers' willingness to spend.