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Asian markets fell yesterday after a better-than-expected rise in US job creation fuelled concerns the Federal Reserve will soon start to reel in its huge stimulus programme.
The dollar edged down a tad after posting strong gains against the yen in New York on Friday following the non-farm payrolls figures, which add to a slew of data indicating the world’s top economy is strengthening.
Tokyo fell 1.4%, or 200.63 points, to 14,109.34 despite the weakening yen, while Seoul slipped 0.9%, or 16.46 points, to 1,816.85 and Sydney gave up 0.67%, or 32.3 points, to 4,809.5.
Hong Kong fell 1.31%, or 272.48 points, to 20,582.19 while Shanghai lost 2.44%, or 48.93 points, to end at 1,958.27.
The Labour Department said Friday the US economy added 195,000 jobs in June, well above the consensus estimate of 166,000 jobs.
While the announcement shows the US recovery is gaining traction, investors fear the Fed will now start cutting back its $85bn-a-month bond-buying that has been credited with fuelling a rally in global markets.
The chance that there will be fewer dollars pumped into the financial system and the likelihood of interest rates rising sent the greenback higher in New York, climbing to ¥101.14 on Friday, from ¥100.21 earlier in the day in Asian trade.
The dollar was at ¥101.15 in European trade on Monday.
The euro, which came under pressure last week after the European Central Bank said it would keep rates at record lows for “as long as necessary”, bought $1.2852 in European trade, compared with $1.2832 late Friday. It was also at ¥130 from ¥129.78.
In Seoul Asiana Airlines fell 5.76% after one of its planes crashed while landing in San Francisco at the weekend, killing two passengers and injuring 182 more.
Oil prices slipped. New York’s main contract, light sweet crude for delivery in August, fell 12¢ to $103.10 a barrel and Brent North Sea crude for August lost 39¢ to $107.33.
Gold was at $1,231.80 per ounce at 1055 GMT, compared with $1,239.70 late Friday.
In other markets, Taipei fell 1.44%, or 115.48 points, to 7,886.34; Manila slumped 2.79%, or 181.57 points, to 6,318.91; Wellington was flat, edging up 3.43 points to 4,493.30; Singapore slipped 0.45%, or 14.26 points, to close at 3,155.47; Jakarta closed down 3.68%, or 169.18 points, at 4,433.63 points; Bangkok fell 2.55%, or 36.69 points, to 1,404.64; and Kuala Lumpur fell 0.53%, or 9.40 points, to close at 1,762.87.