Asian stocks fell on Tuesday after US markets closed for the Labor Day holiday.
US futures were lower and oil prices were mixed.
Hong Kong fell more than 1% as Chinese property stocks fell as investors sold to lock in profits in recent efforts to prop up the ailing industry.
China Vanke lost 1.2% while Country Garden Holdings gave up 2%. Hong Kong-based Sun Hung Kai Properties fell 2.4%.
Chinese services data came in weaker than expected, dampening hopes of a rebound in China’s lackluster growth. Business activity in China’s services sector grew at its slowest pace in eight months, a survey showed.
Hong Kong’s Hang Seng Index fell 1.4% to 18,575.00, while the Shanghai Composite Index fell 0.6% to 3,157.86.
Tokyo’s Nikkei 225 fell 0.2% to 32,870.00.
In Seoul, the Kospi lost 0.3% to 2,577.71. Australia’s S&P/ASX 200 was down 0.5% at 7,279.30. Stocks in Southeast Asia and Taiwan fell.
Investors are watching comments from European Central Bank chief Christine Lagarde and others on Tuesday.
On Friday, the S&P 500 rose 0.2%, posting its first monthly loss since February as US employment data suggested the labor market may be slowing. That fueled hopes that the Federal Reserve may cut interest rate hikes to curb inflation.
The Labor Department reported Friday that employers added a strong 187,000 jobs in August.That’s up from a revised gain of 157,000 in July. Employment moderator: From June to August, the economy added 449,000 jobs, the lowest three-month total in three years.
The report also showed that the unemployment rate rose from 3.5% to 3.8%. That’s the highest level since February 2022, though still low by historical standards.
Strong employment and consumer spending analysts have helped prevent a recession. It is expected in 2023 at some level. But the central bank’s task of controlling inflation by raising wages and prices has become more difficult.
Concerns that the Fed will have to keep interest rates on hold for longer — following reports that the U.S. economy is surprisingly resilient — led the market to pull back in August.
But the latest economic snapshots have bolstered sentiment on Wall Street that the Fed may hold rates at its next policy meeting after raising them sharply from 2022. They have been at their highest level since 2001 in an attempt to return inflation to the Fed’s target. From 2%, the Fed said it is ready to increase interest rates if necessary, but the next step will depend on the latest economic data.
In other trading Tuesday, benchmark U.S. crude gained 23 cents to $85.78 a barrel in electronic trading on the New York Mercantile Exchange. It jumped $1.92 to $85.55 a barrel on Monday.
Brent crude, the benchmark for international trade, fell 16 cents to $88.84 a barrel.
In currency trading, the US dollar rose to 146.74 from 146.48 yen on Monday morning. The euro fell to $1.0787 from $1.0796.
