Asian Stocks Mixed On Strong U.S. Hiring, OPEC Output Cuts

Asian stocks were mixed Thursday, Oct. 6, 2022, after strong US hiring dampened hopes the Federal Reserve might ease off plans for interest rate hikes and the OPEC group of oil exporters agreed to output cuts to shore up prices, Joe McDonald reported for the Associated Press (AP).

Photo Insert: New Zealand declined while Southeast Asian markets gained.

Tokyo and Seoul advanced while Hong Kong and Sydney declined. Chinese markets were closed for a holiday. Oil prices edged higher. Wall Street’s benchmark lost 0.2% on Wednesday, ending a two-day rally, after payroll processor ADP said US employers added 208,000 jobs in September, slightly more than expected.

That showed some parts of the U.S. economy still are strong, giving ammunition to Fed officials who say more rate hikes are needed to cool inflation that is at a four-decade high.

“The economy is too strong for the Fed to pivot. The strong start to October is over,” Edward Moya of Oanda said in a report.

The Nikkei 225 in Tokyo rose 1% to 27,387.50 while the Hang Seng in Hong Kong lost 0.2% to 18,055.68. The Kospi in Seoul surged 1.5% to 2,248.46 while Sydney’s S&P ASX 200 edged less than 0.1% lower to 6,813.50.

New Zealand declined while Southeast Asian markets gained. On Wall Street, the S&P 500 declined to 3,783.28. The benchmark was coming of its strongest two-day rally in 2 1/2 years. The Dow Jones Industrial Average slipped 0.1% to 30,273.87. The Nasdaq composite slid 0.2% to 11,148.64.

In energy markets, benchmark US crude rose 15 cents to $87.91 per barrel in electronic trading on the New York Mercantile Exchange.

It gained $1.24 on Wednesday to $87.76 per barrel after energy ministers from Saudi Arabia and other members of the Organization of Petroleum Exporting Countries (OPEC) agreed to production cuts to shore up sagging prices.

Oil surged to above $110 per barrel following Russia’s February attack on Ukraine but has fallen back. The decision to support prices might help Moscow maintain its income once Europe’s decision to cut purchases of Russian crude as punishment for the war on Ukraine takes effect in December.

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