Asian Stocks, Oil Fall After U.S. Jobless Rate Rises
Asian stocks declined for a fourth day, with Japan’s Topix Index dropping to the lowest level since 1983, and oil fell after the American jobless rate increased last month, wiping out this year’s gains in the Dow Jones Industrial Average. Australian bonds and the U.S. dollar rose.
The MSCI Asia Pacific Index (MXAP) lost 1.4 percent as of 9:40 a.m. in Tokyo, while the Topix slid 2.2 percent, heading for the lowest close since Dec. 2, 1983. Australia’s S&P/ASX 200 Index (AS51) retreated 1.6 percent after non-manufacturing industries in China grew at the slowest pace in a year. Standard & Poor’s 500 Index futures slid 0.7 percent. Oil futures dropped for a fifth day in New York.
“The poor U.S. payrolls number should start to deflate investor optimism about U.S. growth that we’ve encountered, leaving few places for investors to hide,” said Gerard Minack, a developed-market strategist at Morgan Stanley in Sydney.
U.S. unemployment rose to 8.2 percent in May from 8.1 percent the previous month and payrolls increased by 69,000 last month, less than the most-pessimistic forecast in a Bloomberg News survey of economists, Labor Department figures showed on June 1. The non-manufacturing purchasing managers’ index in China fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. European leaders remain divided on solutions for the region’s debt crisis.
The Australian dollar fell 0.5 percent to 96.51 U.S. cents from its June 1 close in New York. Australia’s bonds climbed, with three-year yields falling as much as 12 basis points to a record 1.91 percent.
Oil for July delivery lost as much as 1 percent to $82.44 a barrel in electronic trading on the New York Mercantile Exchange. Prices slid $3.30, or 3.8 percent, to $83.23 a barrel June 1, the lowest close since October.
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