Asia stocks fall ahead of US job reports

Most Asian stock markets posted losses Friday as investors awaited a crucial reading on the U.S. jobs market that comes amid signs economic recovery is losing momentum around the world.

The downdraft in Asia followed Wall Street beginning the third quarter with another loss after reports on unemployment benefit claims, housing and manufacturing raised economic worries.

Japan’s Nikkei 225 stock average was 0.1 percent higher at 9,196.42 after heavy selling this week. The index closed at a seven-month low on Thursday.

South Korea’s Kospi fell 0.4 percent to 1,679.02 while Hong Kong’s Hang Seng dropped 1.4 percent to 19,851.42. The Shanghai Composite Index was off 1 percent at 2,350.24.

The Australian government’s decision to water down a controversial mining tax helped push the S&P/ASX 200 up 0.1 percent to 4,235.5.

Instead of a so-called “super profits tax” of 40 percent on booming mining company profits, Australia will instead impose a 30 percent tax on profits on a limited number of commodities, affecting about 320 companies, down from the 2,500 that fell under the original proposal.

Resource-related shares advanced, with BHP Billiton Ltd. rising 0.3 percent and Rio Tinto Ltd. up 0.7 percent.

In Tokyo, Shares of Toyota Motor Corp. rose 0.3 percent after the automaker announced its latest setback — a recall of 270,000 vehicles worldwide to fix faulty engines.

Investors are waiting for the U.S. jobs report due later Friday which is expected to show that employers cut about 110,000 positions in June. That figure reflects the loss of about 240,000 temporary census jobs.

Investors will be focused on hiring by businesses because that is a key factor needed to revive the economy. Economists polled by Thomson Reuters forecast that private employers added 112,000 jobs, which would be an improvement from the 41,000 added in May but not enough to prevent the unemployment rate from rising.

“Shout all you want about keeping your eye on the far more important private sector job count but the sour mood in markets of late means that few are likely to listen,” DBS Bank said in a report.

A weaker-than-expected level of job creation would add to jitters about a slide back into recession — an increasingly common fear among investors amid Europe’s debt crisis and signs of slowing growth in China.

In New York Thursday, the Dow Jones industrials fell 0.4 percent, to 9,732.53. It was the lowest close since October 2009.

The broader S&P 500 index fell 0.3 percent to 1,027.37, and the Nasdaq composite index fell 0.4 percent, to 2,101.36.

In currencies, the dollar rose to 87.91 yen from 87.72 yen late Thursday. The euro dropped to $1.2494 from $1.2515.

Benchmark crude for August delivery was up 27 cents at $73.22 a barrel in electronic trading on the New York Mercantile Exchange.

Source: AP