Asian stocks sink after US jobs data fan rate hike fears
BEIJING (AP) — Asian stock markets sank Monday after strong U.S. jobs data fanned fears of more interest rate hikes to cool inflation.
Shanghai, Hong Kong and Seoul retreated. Tokyo gained. Oil prices rose.
Wall Street wilted Friday after official data showed U.S. employers hired twice as many people in January as the previous month. That was good news for workers but dampened hopes the Federal Reserve might decide no more rate increases are needed to slow economic activity.
The numbers “look set to inevitably burst the bubble on Fed pivot bets" because they “suggest a re-acceleration in wage pressures," said Tan Boon Heng of Mizuho Bank in a report.
The Shanghai Composite Index fell 0.8% to 3,237.36 while the Nikkei 225 in Tokyo advanced 0.6% to 27,671.02. The Hang Seng in Hong Kong sank 2% to 21,230.81.
The Kospi in Seoul declined 1.1% to 2,452.55 and Sydney's S&P-ASX 200 retreated 0.3% to 7,539.00.
India's Sensex opened down 0.6% at 60,472.35. Southeast Asian markets declined. New Zealand markets were closed for a holiday.
On Wall Street, the benchmark S&P 500 fell 1% on Friday to 4,136.48 after the government reported the economy added 517,000 jobs in January. That was double December's 260,000 and more than double the 185,000 expected by economists.
Despite that, the S&P 500 turned in its fourth weekly gain in the past five. It is 15.6% above its low point in October.
Average hourly wages were 4.4% higher in January than a year earlier. That was lower than December's 4.8% raise but above expectations. Central bankers worry wage growth can push up consumer prices.
The data dampened investor hopes that lower inflation might persuade the Fed and other central banks to ease off plans for more rate increases. They worry central bankers might be willing to...
