Stocks and the dollar turned lower today after the US jobs report showed hiring slowed sharply in May, a sign of economic weakness that could dissuade the Federal Reserve from raising interest rates this month.
France's CAC 40 lost its gains to trade flat at 4,466, while Germany's DAX fell 0.3 per cent to 10,176. Britain's FTSE 100 was up 0.6 per cent to 6,222. US futures turned lower, with the Dow and S&P 500 futures both down 0.3 per cent.
The dollar was among the biggest movers, falling to 107.69 yen from 108.87 before the report. The euro jumped to USD 1.1275 from USD 1.1142.
Investors were digesting the news that the US economy added only 38,000 jobs in May, the lowest amount in five years. The unemployment rate fell to 4.7 per cent from 5 per cent, but mainly because about half a million unemployed people stopped looking for work. The report is likely to push the Federal Reserve to hold off raising its key interest rate this month.
Japan's benchmark Nikkei 225 added 0.5 per cent to 16,642.23. South Korea's Kospi inched up 0.04 per cent to 1,985.84. Hong Kong's Hang Seng added 0.4 per cent to 20,947.24, while the Shanghai Composite gained 0.5 per cent to 2,938.68. The S&P/ASX 200 of Australia jumped 0.8 per cent to 5,318.90.
Benchmark US crude oil was down 14 cents to USD 49.03 a barrel in electronic trading on the New York Mercantile Exchange. It rose 16 cents yesterday, as traders digested OPEC's failure to agree on a production target or limit. Brent crude, which is used to price international oils, was flat at USD 50.06 a barrel in London.
