Asian stocks mixed as Wall Street extends losses as tech, energy stocks fall

HONG KONG — Asian markets were mixed on Thursday following a global sell-off the day before, with Wall Street reporting declines in technology, energy and other sectors.

Japan’s Nikkei 225 index fell 0.9% in morning trading to 36,700.19 points.

Data released Thursday showed that wage growth in Japan remains strong. Average earnings rose 3.6% year-on-year in July, beating market expectations. Real earnings unexpectedly rose 0.4% in July, raising the possibility of another interest rate hike.

The US dollar was quoted at 143.81 Japanese yen on the back of good data.

“If global markets remain in risk-off mode — especially as commodities like oil fall — the Fed could be forced to take a deeper 50 basis point cut. This would be on the back of easing inflation risks, which could push USD/JPY lower further,” Stephen Innes of SPI Asset Management said in a commentary.

In South Korea, the Kospi fell less than 0.1% to 2,579.93 as the country’s economy shrank 0.2% in the second quarter, matching estimates.

Hong Kong’s Hang Seng index fell 0.4% to 17,379.83, while the Shanghai Composite index rose 0.1% to 2,785.38.

Australia S&The P/ASX 200 index rose 0.1% to 7957.40.

US commodity futures fell while oil prices rose.

On Wednesday S&The P 500 fell 0.2% to 5,520.07. The Nasdaq Composite lost 0.3% to 17,084.30. The Dow Jones Industrial Average gained 0.1% to 40,974.97.

The latest market correction came after a government report showed that the number of U.S. job openings unexpectedly fell in July, a sign that hiring could fall in the coming months.

The Labor Department reported 7.7 million job openings in July, down from 7.9 million in June and the fewest since January 2021. The number of job openings has fallen steadily this year, from nearly 8.8 million in January. But overall, the report was mixed, with hiring rising last month.

Several other reports released this week will help the Fed and Wall Street get a clearer picture of the economic situation.

The Institute for Supply Management will release its August services sector index on Thursday. The services sector is the largest component of the U.S. economy.

The United States will release its monthly jobs report for August on Friday. Economists surveyed by FactSet expect the report to show the United States added 160,000 jobs, down from 114,000 in July, and the unemployment rate fell to 4.2% from 4.3%. The strength or weakness of the report will likely affect the Fed’s plans for how to cut its benchmark interest rate.

Traders are forecasting the Fed will cut its benchmark interest rate by 1% by the end of 2024. Such a move would require a rate cut of more than the traditional quarter-percentage point at one of its meetings in the next few months.

In the bond market, the yield on the 10-year Treasury note fell to 3.76% from 3.83% late Tuesday. That’s down from 4.70% in late April, a significant move for the bond market. The yield on the 2-year Treasury note, which tracks potential Fed action more closely, fell to 3.76% from 3.87%.

The 10-year Treasury and 2-year Treasury are at their lowest inverted levels in more than two years. An inversion occurs when the yield on shorter bonds is higher than the yield on longer bonds. Historically, it has signaled a recession, although the current inversion has lasted more than two years in a growing economy.

In energy trading, U.S. crude gained 14 cents to $69.34 a barrel. Brent crude, the international standard, rose 12 cents to $72.82 a barrel.

On the currency market, the euro was priced at $1.1077, down from $1.1082.