Asian shares mixed after poor US jobs data

Tuesday, 7 December 2010 00:01 - - {{hitsCtrl.values.hits}}

HONG KONG, (AFP) - Asian shares were mixed on Monday as worse than expected jobs data out of the United States rekindled concerns over the world’s biggest economy.

The dollar clawed back some losses against the yen and euro after tumbling Friday following the payroll figures.

Hong Kong gained 1.09 percent in the first few minutes of trade and Shanghai rose 0.67 percent but Tokyo slipped 0.30 percent by the break, Seoul fell 0.28 percent and Sydney was flat.

However, the US Labor Department said Friday that the economy created just 39,000 new jobs last month, well short of the 130,000 forecast by economists, as the unemployment rate jumped 0.2 points to 9.8 percent.

The news came as something of a surprise to markets after previous data on manufacturing, private-sector jobs and house sales had all pointed to a recovery in the economy.

The jobs figures sparked speculation that the Federal Reserve may step up large-scale bond purchases, pumping cash into the economy, which sent the dollar down in New York trade.

However, the greenback picked up slightly in Tokyo morning trade.

The euro fell to 1.3363 dollars, from 1.3415 dollars late Friday in New York. The European single currency had been sitting in the 1.32 dollar range in Asian trade Friday.

The euro was at 110.65 yen, from 110.82 yen last week.

The greenback rose against the Japanese currency to 82.85 yen from 82.58 yen in New York.

South Korean shares slipped after four consecutive gains last week as dealers brushed off news that Seoul had agreed a free-trade deal with the United States.

The weaker dollar sent the price of gold and oil higher.

New York’s main contract, light sweet crude for January delivery, gained 14 cents to 89.33 dollars a barrel after closing at 89.19 dollars on Friday, its highest point since October 9, 2008.

Brent North Sea crude for delivery in January advanced 17 cents to 91.59 dollars a barrel, after it also hit two-year highs on Friday.

And gold opened at 1,410.00-1,411.00 dollars an ounce in Hong Kong, up from Friday’s close of 1,391.00-1,392.00 dollars.