SEOUL, South Korea—Asian markets slipped on Monday as weaker-than-expected United States jobs figures dented sentiment. Investors were also keeping an eye on President Donald J. Trump’s visit to Asia, where he is expected to discuss North Korean nuclear issues with leaders in the region.
Japan’s Nikkei 225 finished flat at 22,548.35, while South Korea’s Kospi dropped 0.3 percent to 2,549.41. Hong Kong’s Hang Seng index dipped 0.2 percent to 28,543.99, but the Shanghai Composite Index added 0.5 percent to 3,388.17. Australia’s S&P/ASX 200 dipped 0.1 percent to 6,055.85. Stocks in Southeast Asia were mixed.
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 US has massive trade deficits with Japan and that he hopes to turn that around. He also said his decision to pull the US 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.
“While we have very light US economic diary this week, there will be no lack of political bluster as the US 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.”
Last Friday US employers added fewer-than-expected 261,000 jobs in October, and the unemployment rate dipped to 4.1 percent, its lowest level in nearly 17 years. But wage growth was also weaker than economists forecast. Average hourly earnings were up 2.4 percent from a year earlier, a slowdown from September’s 2.8-percent rate. Analysts said the below-expectations jobs figures did not dent expectations for a Federal Reserve rate hike in December.
US stocks finished higher last Friday driven by technology stocks. The Standard & Poor’s 500 rose 0.3 percent to 2,587.84. The Dow Jones industrial average advanced 0.1 percent to 23,539.19, and the Nasdaq composite climbed 0.7 percent to 6,764.44.
Benchmark US 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 last Friday, its highest settlement price since July 2015. Brent crude, the international standard, gained 38 cents to $62.45 per barrel. Last Friday, it rose $1.45 to $62.07 per barrel.
The US dollar strengthened to ¥114.36, from ¥114.05, while the euro fell to $1.1601, from $1.1609.
Image credits: AP