Asian stock markets mixed in choppy trade as investors brace for US jobs report

Asian stocks lackluster as traders eye US job data

HONG KONG — Asian stocks were narrowly mixed Thursday as investors eyed a key U.S. jobs report for signs that American consumer spending might recover and help the world’s largest economy turn around by year’s end.

Markets across the region zigzagged in thin trade throughout the day, suggesting investors were reluctant to place bets one way or the other. Oil prices held above $69 a barrel, while the dollar gained modestly against the yen and euro.

Investors will be watching closely U.S. jobs figures, due out later Thursday, that are expected to show another uptick in the unemployment rate from 9.4 percent in May to 9.6 percent in June — marking a 26-year high.

Growing unemployment has kept investors on edge in recent months because it suggests the financial health of American consumers, whose spending habits are so critical to the U.S. economy and Asian exporters, is shaky.

“The biggest concern is if unemployment hits above 10 percent,” said Alex Tang, head of research at Core Pacific-Yamaichi International in Hong Kong. “That will create lots of uncertainty about the pace of recovery in the U.S., and that’s definitely a major worry right now.”

Economists see the U.S. shedding 363,000 jobs in June compared to 345,000 in May — which would add to the evidence that rate of layoffs is shrinking and the most severe cuts by companies have already past.

Despite overnight gains on Wall Street, Asian markets were largely directionless, with many closing slightly lower.

Tokyo’s Nikkei 225 stock average gave back its gains to fall 63.78, or 0.6 percent, to 9,876.15. In Hong Kong, the Hang Seng fell 200.68 points, or 1.1 percent, to 18,178.05, after the market was closed Wednesday for a holiday.

Elsewhere, Korea’s Kospi closed flat in back-and-forth trade. Markets in Australia and Shanghai gained, while India’s Sensex fell 0.9 percent. Taiwan’s benchmark rose 1.3 percent.

Traders see a confluence of factors that could keep the markets adrift in the coming weeks: quieter summer months, caution ahead of earnings reports in August, and signs stocks are fairly priced after the spring rally.

But because most of the economic evidence points to a bottoming out, neither are markets likely to suffer big losses for now.

“Everybody is well positioned and recent IPOs and placements have generally fared well,” said John Mar, co-head of sales trading at Daiwa Securities SMBC Co. in Hong Kong. “I don’t think anyone sees a sharp pullback … Near term there doesn’t seem to be anything that’s going to shock the market.”

In the U.S. overnight, reassuring data on manufacturing and housing lifted Wall Street higher to start the quarter.

The Dow rose 57.06, or 0.7 percent, to 8,504.06. It climbed as high as 8,580.47 in earlier trading, but then pared its gains as the day went on. The Standard & Poor’s 500 index rose 4.01, or 0.4 percent, to 923.33. The Nasdaq composite index rose 10.68, or 0.6 percent, to 1,845.72.

U.S. futures pointed to a lower open Thursday. Dow futures dropped 52, or 0.6 percent, to 8,396 and S&P futures were down 5.5, or 0.6 percent, to 913.80.

Oil prices lingered above $69 a barrel in Asia, with benchmark crude for August delivery down 28 cents at $69.03. On Tuesday, it fell 58 cents to settle at $69.31.

The dollar traded at 96.66 yen from 96.51 yen late Wednesday in New York. The euro was lower at $1.4112.