| U-T San Diego | - |
Specialist
Michael Pistillo watches his screens at his post on the floor of the
New York Stock Exchange, Friday, March 6, 2015. U.S.
Asian stocks fall after US jobs data sparks rate concern
BEIJING
(AP) — Asian stock markets fell Monday after strong U.S. jobs data
increased chances that the Federal Reserve will raise interest rates
sooner.
KEEPING SCORE: The
Shanghai Composite Index lost 1.1 percent to 3,206.31 and Tokyo's Nikkei
225 shed 0.7 percent to 18,828.94. Hong Kong's Hang Seng lost 0.7
percent to 24,000.70 and Seoul's Kospi declined 0.5 percent to 2,002.00.
Sydney, Singapore, New Zealand and Taiwan also fell. On Friday, the
prospect of higher interest rates sent U.S. stocks tumbling.
JOBS
JUMP: Strong U.S. employment growth in February was good news for
workers but alarmed investors who worried a rate hike, previously not
expected until as late as October, might happen as early as June. The
Fed has held interest rates close to zero for more than six years to
stimulate growth following the 2008 global crisis. But Friday's
announcement that employers added 295,000 jobs last month, which was far
above expectations of about 235,000, fueled expectations unemployment
would fall further and inflation might pick up. That could prompt the
Fed to try to tame price pressures by raising rates, which would slow
economic growth.
THE QUOTE:
"The market has been positioning itself for a (U.S. interest rate) rise
in October. Friday's data suggest June or July is a real possibility,"
IG market strategist Evan Lucas said in a report. "The reaction from the
U.S. market on Friday shows no one is really positioned for moves in
the Fed funds rate. The rush for the exit will be rapid when it does
shift."
CHINESE TRADE:
Imports shrank in February for a second month, declining 20.5 percent
from a year earlier, in a new sign of weakness in the world's
second-largest economy. That brought the total contraction in Chinese
imports for the first two months of the year to 20.2 percent. Exports
jumped 48.3 percent but with January's 3.3 percent contraction factored
in, growth so far this year is 15 percent. The trade minister said
Saturday weakness was expected in February trade but expressed
confidence China can hit the government's target of 6 percent growth
this year in total imports and exports.
WALL
STREET: Stocks opened lower Friday and the losses accelerated
throughout the day. By the close of trading the S&P 500 index had
logged its biggest one-day loss since Jan. 5.The Standard & Poor's
500 fell 29.78 points, or 1.4 percent, to 2,071.26. The Dow Jones
industrial average dropped 278.94 points, or 1.5 percent, to 17,856.78.
The Nasdaq composite fell 55.44 points, or 1.1 percent, to 4,927.37.
ENERGY:
Benchmark U.S. crude shed 22 cents to $49.38 per barrel in electronic
trading on the New York Mercantile Exchange. The contract added 29 cents
on Friday to close at $49.61. Brent crude, used to price international
oils, lost 28 cents to $59.45 per barrel in London after gaining 48
cents on Friday to close at $59.73.
CURRENCIES: The dollar strengthened to 120.86 yen from Friday's 120.81. The euro was little changed at $1.0843 from $1.0844.
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