NEW YORK – On Tuesday, Asian stocks saw a downturn, mirrored by a dip in U.S. futures, as investors awaited key U.S. employment and inflation figures that could influence future interest rate decisions.
In Tokyo, the Nikkei 225 fell by 1.2%, landing at 49,544.21, following early data indicating a slight deceleration in manufacturing. The S&P Global Flash purchasing managers index improved marginally, climbing to 49.7 from November’s 48.5, on a scale where figures above 50 suggest growth.
Market participants are closely monitoring Japanese economic indicators ahead of the Bank of Japan’s policy meeting set for Friday. Many anticipate an interest rate hike, which could send ripples through global bond and cryptocurrency markets.
Meanwhile, Chinese markets saw declines after November’s data, released on Monday, did not meet expectations. Retail sales experienced their slowest growth since the pandemic era in 2022, rising only 1.3% compared to the previous year. Additionally, both lending and investment showed signs of weakening.
Tan Boon Heng from Mizuho Bank commented in a report, “Overall, the data set confirms a loss of momentum as the year draws to a close, aligning with our growth forecasts moderating to around 4% in the last quarter.”
In Hong Kong, the Hang Seng index dropped 1.9% to 25,139.16, while Shanghai’s Composite index decreased by 1.2% to 3,820.85.
South Korea’s Kospi gave up 1.5% to 4,027.83, while the Taiex in Taiwan lost 1.1%.
Australia’s S&P/ASX 200 shed 0.6% to 8,583.00.
Shares in Roomba maker iRobot sank 9.3% in after hours trading after the company filed for Chapter 11 bankruptcy protection. That was on top of a nearly 73% decline on Monday. The company know for its robotic vacuums has struggled with increased competition but said it doesn’t expect any disruptions to its devices as it is taken private under a restructuring process.
On Monday, the S&P 500 slipped 0.2% to 6,816.51, though the majority of stocks within the index rose. The Dow Jones Industrial Average dipped 0.1% to 48,416.56, and the Nasdaq composite fell 0.6% to 23,057.41.
Artificial-intelligence -related stocks, which were mixed following last week’s swings, helped keep gains in check.
Nvidia, the chip company that’s become the face of the AI boom, added 0.7%. But Oracle sank another 2.7% following its 12.7% tumble last week, its worst in more than seven years. Broadcom fell 5.6%.
AI stocks have wobbled on worries that the billions of dollars flowing into chips and data centers may not yield a big-enough payoff.
The main focus on Wall Street this week, apart from AI, will be several big updates on the U.S. economy.
Economists expect the jobs report from November, due Tuesday, to show employers added 40,000 more jobs than they cut during the month. An update on inflation Thursday is forecast to show U.S. consumers paid prices that were 3.1% higher in November than a year before.
Investors are hoping that the job market will weaken by just enough to get the Federal Reserve to lower interest rates, but not so much that the economy slips into recession. Lower rates help boost the economy and prices for investments, but also may worsen inflation.
Economists expect Tuesday’s report to show the unemployment rate at 4.4%, which would keep it near its highest and worst level since 2021.
In other dealings early Tuesday, U.S. benchmark crude oil lost 32 cents to $56.50 per barrel. Brent crude, the international standard, fell 33 cents to $60.23 per barrel.
The U.S. dollar slipped to 154.81 Japanese yen from 155.21 yen. The euro fell to $1.1753 from $1.1755.
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AP Business Writer Stan Choe contributed.
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