Asia Markets Extend Declines as U.S. Jobs Data Triggers Sell-Off on Wall Street
This is CNBC Live Blog covering Asia-Pacific markets.
Markets in Asia-Pacific marked 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.
ADP, a payroll processor, reported on Thursday that companies created more jobs than expected.
Private sector jobs surged
The Dow Jones consensus estimate of 220,000 was significantly lower than the 497,000 increase for the month. This was the largest monthly increase since July 2022.
These data are also included
Minutes
The minutes of the Federal Reserve meeting held in June, released on Wednesday, showed that most officials supported future rate increases.
Japan's
Nikkei 225
The Topix fell by 0.98% and the NASDAQ dropped 1.05%. The Kospi fell 0.51% in South Korea as Samsung Electronics predicted a 96% drop in its operating profit for the second quarter.
Australia is the
S&P/ASX 200
The index fell by 0.95%. Futures linked to Hong Kong's Hang Seng Index also indicated a lower opening.
Overnight in the U.S.
The
Dow Jones Industrial Average
The index dropped by 366.38 or 1.07%. The
S&P 500
The loss was 0.79%
Nasdaq Composite
The Dow and S&P 500 both dropped by 0.82%. The Dow and S&P 500 had their worst day since May.
With only Friday remaining in the holiday-shortened week, the three major indexes look set to end the week with a decline. The Dow Jones is on track to drop 1.4% for the week. S&P 500, Nasdaq and Dow Jones are all on track for weekly losses between 0.9% and 0.8%.
This report was contributed by Alex Harring and Samantha Subin of CNBC.
ADP reports that private payrolls increased by 497,000 in June.
According to a report by the Bureau of Labor Statistics, private payrolls increased dramatically in June. The month-over-month increase was 497,000 jobs.
ADP is a payroll processing company.
.
Total was almost double the Dow Jones estimate of 220,000, and was boosted by a growth of 232,000 within the key leisure and hospitality industry. Construction grew 97,000, while trades, transportation and utilities increased by 90,000.
The total for the month was also the highest since July 20,22. The May total has been revised down to 267,000, a reduction of 11,000 from its initial estimate.
--Jeff Cox
Dow and S&P500 on track for the worst daily performance in over a month
You can also find out more about the following:
Dow
You can also find out more about the following:
S&P 500
With just a few hours remaining in the Thursday session, both are on course to record their worst performances in over a month.
The Dow's 1,3% decline puts it on course for its largest loss in a single session since March 22 when the blue chip average ended 1.6% lower.
The S&P 500 will have its worst day in May since it fell 1.1%.
Alex Harring
The number of job openings in May decreased to less than 10 million.
A Labor Department report released on Thursday showed that job openings in May were lower than expected, giving some hope for a loosening of the labor market.
The Job Openings and Labor Turnover Survey revealed that there were 9.82 million listings, down from 10.32 million in the previous month (which was upwardly revised) and below FactSet's estimate of 9.9 millions.
The number of quits increased in May, reaching just over 4 million.
Separate economic data was released at 10 am. The ISM Services Index for June showed a reading of 53.9, an increase from May's 50.3 and better than the estimated 51.3.
--Jeff Cox