Asian Stock Markets Are Mixed Ahead Of The Latest US Job Report

Asian stock markets were mixed on Friday ahead of U.S. jobs data, which could influence the Federal Reserve's plans for additional interest rate hikes to cool rising inflation.

Shanghai and Seoul advanced, while Tokyo and Hong Kong reversed their positions. Oil prices have increased by more than $1.50 per barrel.

Investors are looking forward to August hiring data in the United States to see how the economy is responding to four previous hikes to cool inflation, which is at a four-decade high. A strong reading would give Fed officials ammunition to argue that higher interest rates are needed to slow economic activity and reduce upward pressure on consumer prices.

If the figures show that more than 300,000 jobs were added in August, it "could likely reinforce further lean towards" a 0.75 percentage point rate hike at this month's Fed meeting, according to Yeap Jun Rong of IG in a report.

The Shanghai Composite Index rose 0.1% to 3,189.09, while Tokyo's Nikkei 225 fell 0.2% to 27,604.37. Hong Kong's Hang Seng Index fell 0.8% to 19,443.49.

Following new virus outbreaks, the Chinese government ordered most residents of Chengdu, a city of 21 million people, to stay at home on Thursday. This has added to the disruption as the area recovers from power outages caused by a drought that depleted reservoirs for hydroelectric dams, but economists believe the overall economic impact will be limited.

The Kospi in Seoul rose less than 0.1% to 2,417.25, while the S&P-ASX 200 in Sydney fell less than 0.1% to 6,844.80. Singapore fell while New Zealand and Jakarta rose.

On Wall Street, the benchmark S&P 500 index rose 0.3% to 3,966.85, snapping a four-day losing streak.

After surging the previous month on expectations that the Fed would ease off rate hikes due to signs that US economic activity was cooling and inflation was leveling off, it ended August with a 4.2% loss.

Those hopes were dashed last week when Fed Chair Jerome Powell stated that rates must remain high "for some time" in order to slow the economy. For many investors, the only question is how much and when the next hike will be.

The Labor Department reported on Tuesday that there were two jobs for every unemployed person in July, giving Fed officials ammunition to argue for rate hikes. On Thursday, it reported that unemployment claims fell last week, indicating that the labor market is still strong.

The Dow Jones Industrial Average closed 0.5% higher at 31,656.42. The Nasdaq fell 0.3% to 11,785.13, its fifth daily loss.

Health-care stocks, companies that rely on direct consumer spending, and providers of communication services all gained. Johnson & Johnson increased by 2.5%. Target increased by 2.8%, while Netflix increased by 2.9%.

Technology Stocks Have Dropped

Nvidia fell 7.7% after the chipmaker said the US government imposed licensing requirements that could stymie sales to China.

On the New York Mercantile Exchange, benchmark US crude rose $1.65 to $88.26 per barrel in electronic trading. On Thursday, the contract fell $2.94 to $86.61.

Brent crude, the international oil trading benchmark, rose $1.64 to $94 per barrel in London. The previous session saw a $3.28 drop to $92.36 per barrel.

The dollar rose to 140.32 yen from 140.23 yen on Thursday. The euro rose from 99.45 cents to 99.60 cents.