Asia stocks fall as US jobs data spark talk of rate hike

Passersby are reflected on an electronic board of a securities firm in Tokyo on March 4, 2015. Asian markets mostly fell Monday, March 9, dragged down by expectations the US could soon raise interest rates, while Tokyo took a hit from news Japan’s economy grew slower than thought in the last quarter of 2014. AP PHOTO/SHUJI KAJIYAMA

HONG KONG–Asian markets mostly fell Monday, dragged down by expectations the US could soon raise interest rates, while Tokyo took a hit from news Japan’s economy grew slower than thought in the last quarter of 2014.

The euro struggled at 12-year lows against the dollar as the European Central Bank (ECB) kicked off its 1.1 trillion euro ($1.2 trillion) bond-buying stimulus program.

Sydney skidded 1.31 percent, or 77.56 points, to close at 5,821.30 and Hong Kong fell 40.95 points to 24,123.05. Seoul shed 1 percent, or 20.12 points, to 1,992.82.

Tokyo fell 0.95 percent, or 180.45 points, to end at 18,790.55, after the government downgraded growth for the October-December period to 0.4 percent, from 0.6 percent.

The poor data could put the Bank of Japan under pressure to launch more stimulus, economists said, as the world’s third-largest economy struggles to exit two decades of lassitude.

Chinese shares, however, bucked the regional trend to close higher following news the government is considering allowing banks to trade in securities.

The benchmark Shanghai Composite Index reversed earlier losses to end up 1.89 percent, or 61.22 points, at 3,302.41 on turnover of 359.9 billion yuan ($58.5 billion).

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, rose 1.23 percent, or 20.30 points, to 1,672.07 on turnover of 286.2 billion yuan.

Asian investors followed their US peers, who ran for the exit on Friday after the Labor Department said unemployment fell to 5.5 percent in February, the lowest level since May 2008.

Analysts said the latest strong jobs report–which follows a slew of other positive indicators–increased the likelihood the US Federal Reserve will lift rates from near-zero as early as the summer.

The news sent Wall Street shares tumbling, with the Dow losing 1.54 percent and the S&P 500 1.42 percent, while the Nasdaq fell 1.11 percent.

Euro struggles

“The market’s response to the much-awaited US payrolls report was abrupt,” Kymberly Martin, a markets strategist in Wellington at Bank of New Zealand, said in a note to clients.

“This will provide sufficient ammunition for the Fed to remove patience from their statement at the next meeting and undertake an initial rate hike in June.”

While US stocks retreated, the dollar picked up against the yen. In afternoon trade Monday it was at 121.04 yen, compared with 120.78 yen in New York and well up from the 120.01 yen seen in Tokyo earlier Friday.

The euro bought $1.0840, compared with $1.0842 in New York and 131.24 yen against 130.95 yen.

The single currency, already under pressure because of a stuttering eurozone economy and worries over Greece’s future, is expected by some experts to reach parity with the dollar by next year as the ECB rolls out its bond-buying program.

The 18-month easing scheme, which starts Monday, is the long-awaited “bazooka” designed to help kickstart the eurozone and fight off deflation.

The US jobs figures also sent the dollar rallying against emerging economy currencies as dealers move their cash back in search of safer and healthier returns.

The greenback at one point touched 13,077 Indonesian rupiah, its highest since 1998, while India’s rupee touched a two-month low of 62.73 to the dollar.

Oil prices fell. US benchmark West Texas Intermediate dipped 11 cents to $49.50 a barrel while Brent shed 33 cents to $59.40 in afternoon trade.

Gold fetched $1,174.98 against $1,197.11 late Friday.

In other markets:

— Taipei gave up 0.86 percent, or 82.79 points, to 9,562.98.

Taiwan Semiconductor Manufacturing Co. shed 2.35 percent to Tw$145.5 while Hon Hai Precision Industry was 1.13 percent lower at Tw$87.8.

— Wellington fell 0.10 percent, or 6.11 points, to 5,896.96.

Mighty River Power slipped 1.16 percent to NZ$3.40 and Air New Zealand was down 0.17 percent at NZ$2.95.

— Manila dropped 0.52 percent, or 41.04 points, to end at 7,820.29 after closing at a record high Friday.

Top-traded Metropolitan Bank eased 0.69 percent to 93.85 pesos and Philippine Long Distance Telephone gave up 0.52 percent to 3,084.00 pesos.

— Jakarta ended down 1.27 percent, or 70.15 points, to 5,444.63.

Coal mining and energy company Adaro Energy rose 0.51 percent to 990 rupiah, while palm oil producer Astra Agro Lestari fell 0.29 percent to 26,075 rupiah.

— Bangkok closed down 0.55 percent, or 8.58 points, to 1,559.71.

Telcoms giant True Corporation PLC dipped 0.20 percent to 13.70 baht, while Kasikorn Bank lost 0.44 percent to close at 228.0.

— Kuala Lumpur closed down 0.84 percent, or 15.22 points lower, at 1,791.74.

Sime Darby lost 0.21 percent to 9.34 ringgit, Telekom Malaysia dipped 2.07 percent to 7.10 while Tenaga Nasional shed 0.27 percent to 14.62 ringgit.

— Singapore closed down 0.38 percent, or 12.94 points, to 3,404.57.

OCBC Bank declined 0.10 percent to Sg$10.40 while property firm Keppel Land rose 0.22 percent to Sg$4.52.

— Mumbai fell 2.05 percent, or 604.17 points, to end at 28,844.78 points.

Sesa Sterlite Limited fell 5.21 percent to 199.15 rupees, while fast-moving consumer goods major Hindustan Unilever rose 3.76 percent to 974.30 rupees.–Bloomberg News contributed to this story