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Red lanterns are hung up on the street in Wan Chai, Hong Kong. (Photo by Zhang Wei/China News Service via Getty Images)
China News Service | China News Service | Getty Images
Markets in Asia-Pacific were set for a second day of declines after Wall Street sold off on stronger-than-expected U.S. jobs data, leaving room for more rate hikes ahead by the Federal Reserve.
Companies created far more jobs than expected, payroll processing firm ADP reported Thursday. Private sector jobs surged by 497,000 for the month, much better than the 220,000 Dow Jones consensus estimate. The increase resulted in the biggest monthly rise since July 2022.
The data also followed minutes of the Federal Reserve’s June meeting, released Wednesday, which showed that most officials would support more rate increases ahead.
The Nikkei futures contract in Chicago was at 32,375 while its counterpart in Osaka was at 32,380 against the Nikkei 225’s last close at 32,773.02.
In Australia, futures tied to the S&P/ASX 200 were at 7,030 against the index’s last close at 7,163.4.
Overnight in the U.S., the Dow Jones Industrial Average dropped 366.38 points, or 1.07%. The S&P 500 lost 0.79% and the Nasdaq Composite dropped 0.82%. Thursday’s session marked the worst daily performance for the Dow and S&P 500 since May.
The three major indexes are on pace to finish the week lower with just Friday’s session left in the holiday-shortened trading week. The Dow is poised for a slide of 1.4% on the week. The S&P 500 and Nasdaq, meanwhile, are on pace for weekly losses of 0.9% and 0.8%, respectively.
— CNBC’s Alex Harring, Samantha Subin contributed to this report
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