Stocks in Asia retreated after an unexpected rise in American jobless claims rekindled concern a recovery in the world’s largest economy has stalled. The dollar extended this week’s slide.
Shares in China, Hong Kong and Australia bore the brunt of losses. Intel Corp.’s warning on a production delay also weighed on sentiment after triggering an after-hours slump in the stock. Contracts on the S&P 500 Index were flat after the gauge slipped from a four-month high, led by losses in technology firms and companies that make non-essential consumer goods. The Nasdaq 100 Index earlier turned negative for the week.
The first uptick in jobless claims since March comes as Congress negotiates a new relief package for millions of Americans who are set to lose enhanced benefits at the end of the month. Other worrying signs of the U.S. economy slowing added to concern that the growth in some areas will peter out.
“You have people taking the opportunity to get a little bit off the table,” Victoria Fernandez, chief market strategist at Crossmark Global Investments Inc., said on Bloomberg TV. “With initial claims moving higher this week, we need to keep an eye on the reopening plans across the country.”
Japan remains closed for a holiday Friday.
These are the main moves in markets:
Stocks
- S&P 500 Index futures rose 0.1% as of 11:16 a.m. in Hong Kong. The index fell 1.2% on Thursday.
- Shanghai Composite slid 1.7%.
- South Korea’s Kospi was little changed.
- Hong Kong’s Hang Seng Index declined 1.5%.
- Australia’s S&P/ASX 200 Index slipped 1%.
- Euro Stoxx 50 futures fell 0.9%.
Currencies
- The yen was at 106.50 per dollar, up 0.3%.
- The offshore yuan was steady at 7.0138 per dollar.
- The euro bought $1.1614, up 0.2%.
- The Aussie climbed 0.2% to 71.11 U.S. cents.
Bonds
- The yield on 10-year Treasuries fell two basis points to 0.58% on Thursday. Futures were little changed ahead of the London open for cash bonds.
- Australia’s 10-year yield dipped to 0.86%.
Commodities
- West Texas Intermediate crude oil added 0.3% to $41.21 a barrel.
- Gold was flat at $1,887.60 an ounce.
Source: Bloomberg