Ahead of U.S. jobs data that may affect Federal Reserve plans for additional interest rate hikes to curb soaring inflation, Asian stock markets were neutral on Friday.
Tokyo and Hong Kong withdrew while Shanghai and Seoul moved forward. Over $1.50 per barrel extra was paid for oil.
In order to gauge how the economy is responding to four previous hikes to reduce inflation, which is at a four-decade high, investors were looking forward to U.S. statistics on hiring in August. A positive number would support Fed policymakers' claims that higher interest rates are necessary to restrain economic growth and relieve pressure on consumer prices to rise.
A rate hike of up to 0.75 percentage points at this month's Fed meeting, according to IG's Yeap Jun Rong, would "likely reinforce further lean towards" the finding that more than 300,000 jobs were gained in August.
The Nikkei 225 in Tokyo fell 0.2% to 27,604.37, while the Shanghai Composite Index rose 0.1% to 3,189.09. Hong Kong's Hang Seng dropped 0.8% to 19,443.49.
Following new virus outbreaks, the Chinese government on Thursday urged the majority of Chengdu's 21 million citizens to stay at home. This made things more chaotic as the region worked to restore power after a drought dried up the reservoirs for hydroelectric dams, but economists think the overall economic impact should be minimal.
The S&P-ASX 200 in Sydney decreased less than 0.1% to 6,844.80 while the Kospi in Seoul increased less than 0.1% to 2,417.25. While Singapore lost ground, Jakarta and New Zealand advanced.
The benchmark S&P 500 index increased 0.3% on Wall Street to 3,966.85, snapping a four-day losing streak.
After soaring the month prior on anticipation the Fed may scale back rate hikes owing to indications U.S. economic activity was weakening and inflation might be leveling off, it concluded August with a 4.2% loss.
These expectations were dashed last week when Fed head Jerome Powell stated that the Fed must maintain rates at a high level "for some time" in order to slow the economy. Many investors are solely interested in knowing when and by how much the next increase will occur.
According to the Labor Department's data released on Tuesday, there were two jobs for every unemployed person in July, supporting the Fed's case for raising interest rates. On Thursday, it was revealed that fewer people filed for unemployment benefits last week, another evidence of a robust labor market.
At 31,656.42, the Dow Jones Industrial Average registered a 0.5% gain. The Nasdaq fell 0.3% to 11,785.13 for a sixth straight day of decline.
Stocks in the healthcare sector, businesses that rely on direct consumer spending, and suppliers of communications services all increased. Johnson & Johnson gained 2.5 percent. Netflix and Target both increased by 2.9%.
Technology Shares fell
After the chip designer claimed that the U.S. government had imposed license requirements that would interfere with sales to China, Nvidia's stock fell 7.7%.
On the New York Mercantile Exchange's computerized trading platform, benchmark U.S. crude increased $1.65 to $88.26 a barrel in the energy sector. On Thursday, the contract dropped $2.94 to $86.61.
The benchmark price for international oil trading, Brent crude, increased $1.64 to $94 per barrel in London. The previous session, it fell $3.28 to $92.36 per barrel.
The dollar increased from 140.23 yen on Thursday to 140.32 yen today. From 99.45 cents, the euro increased to 99.60 cents. The Globe & Mail
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