(RTTNews) – Asian stock markets are in negative territory on Friday following the weak cues overnight from Wall Street after data showed weaker-than-expected U.S. private sector job growth in June.
The report from payroll processor ADP came a day ahead of the Labor Department’s monthly jobs report due later today. Rising global bond yields amid growing expectations of tighter monetary policy by global central banks also dampened investor sentiment.
The Australian market is notably lower following the negative cues from Wall Street.
In late-morning trades, the benchmark S&P/ASX 200 Index is declining 70.50 points or 1.22 percent to 5,688.30, off a low of 5,687.50. The broader All Ordinaries Index is losing 68.40 points or 1.18 percent to 5,729.10.
The big four banks are weak. Commonwealth Bank, National Australia Bank, Westpac and ANZ Banking are down in a range of 0.9 percent to 1.7 percent.
Among oil stocks, Santos is declining almost 2 percent, Woodside Petroleum is down more than 1 percent and Oil Search is lower by 1 percent despite crude oil prices rising modestly overnight.
The major miners are mostly higher. BHP Billiton is adding 0.5 percent and Rio Tinto is up 0.3 percent, while Fortescue Metals is losing more than 2 percent.
Gold miner Newcrest Mining is losing almost 1 percent and Evolution Mining is unchanged.
Flight Centre Travel Group said it has acquired Olympus Tours, a Mexican travel operator, and Bespoke Hospitality Management Asia, a Thailand-based hotel operator for an undisclosed sum. Shares of Flight Centre are edging up less than 0.1 percent.
Coca-Cola Amatil’s shares are down almost 5 percent, extending losses from Thursday, after the company lost a major contract with Australian pizza giant Domino’s to rival PepsiCo and also failed to get its latest no-sugar offering on the shelves of supermarket giant Woolworths.
Shares of Bellamy’s Australia are in a trading halt so as to allow the infant formula supplier to determine why Chinese authorities suspended the CNCA licence of its recently acquired canning facility Camperdown Powder.
In economic news, the latest survey from the Australian Industry Group showed that the construction sector in Australia continued to expand in June, albeit at a slightly slower pace, with a Performance of Construction Index score of 56.0. That’s down from 56.7 in May, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.
In the currency market, the Australian dollar has fallen against a weaker U.S. dollar, which itself fell on disappointing U.S. private sector jobs data. In early trades, the local unit was trading at US$0.7585, down from US$0.7600 on Thursday.
The Japanese market is extending losses from the previous session, tracking the weak cues overnight from Wall Street as well as rising global bond yields.
In late-morning trades, the benchmark Nikkei 225 Index is losing 57.36 points or 0.29 percent to 19,936.70, off a low of 19,856.65.
The major exporters are declining despite a weaker yen. Canon and Panasonic are lower by more than 2 percent each, while Sony is losing 0.3 percent. Toshiba is rising almost 1 percent.
Among automakers, Toyota is rising almost 1 percent and Honda is edging up less than 0.1 percent. In the banking sector, Mitsubishi UFJ Financial is declining 0.5 percent and Sumitomo Mitsui Financial is lower by 0.6 percent.
In the oil space, Inpex is adding 0.2 percent and Japan Petroleum Exploration is edging lower by less than 0.1 percent after crude oil prices rose modestly overnight.
Among the other major gainers, Nikon Corp. is rising more than 3 percent, Toho Zinc is advancing almost 3 percent and Sony Financial Holdings is higher by more than 2 percent. On the flip side, Canon, FamilyMart UNY Holdings and Panasonic are all losing more than 2 percent each.
In economic news, Japan will see May figures for labor cash earnings, and also for its leading and coincident indexes today.
In the currency market, the U.S. dollar is trading in the mid 113 yen-range on Friday.
Elsewhere in Asia, Shanghai, South Korea, Singapore, New Zealand, Malaysia, Hong Kong and Taiwan are all lower. Bucking the trend, the Indonesian market is modestly higher.
On Wall Street, stocks closed lower on Thursday following the release of a report from payroll processor ADP showing disappointing private sector job growth in the month of June. The release of the report from ADP comes a day ahead of the release of the Labor Department’s monthly jobs report, which includes both private and public sector jobs.
The Dow slid 158.13 points or 0.7 percent to 21,320.04, the Nasdaq tumbled 61.39 points or 1 percent to 6,089.46 and the S&P 500 slumped 22.79 points or 0.9 percent to 2,409.75.
The major European markets also moved to the downside on Thursday. While the U.K.’s FTSE 100 Index dropped by 0.4 percent, the French CAC 40 Index and the German DAX Index fell by 0.5 percent and 0.6 percent, respectively.
Crude oil futures rose Thursday, trimming the previous session’s big losses amid a surprisingly large drop in U.S. oil stockpiles. WTI oil gained 39 cents to $45.52 a barrel on the New York Mercantile Exchange, after dropping more than 4 percent in the previous session.
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