* MSCI Asia ex-Japan falls 0.3 pct, Nikkei opens down 1.3
pct
* Oil futures fall over $1 from Thursday settlements
By Chikako Mogi
TOKYO, April 9 (Reuters) – Asian shares fell on Monday as a
sharp slowdown in U.S. jobs growth raised concerns about the
strength of the world’s largest economy, making investors
cautious ahead of more U.S. data and earnings as well as figures
from China due this week.
MSCI’s broadest index of Asia Pacific shares outside Japan
fell for a fourth straight session, down 0.3
percent, while Japan’s Nikkei average opened down 1.3
percent, after posting its worst weekly loss in eight months
last week.
U.S. stock futures fell more than 1 percent and Treasuries
prices rallied on Friday after data showed U.S. payrolls grew by
120,000 in March, far below the expected gain of 203,000 jobs
and the smallest increase since October. The data kept the door
open for the Federal Reserve to provide more monetary support to
the fragile economy.
The dollar fell against the euro and the yen on Friday after
the U.S. jobs data. The U.S. currency extended its loss against
the yen on Monday, easing 0.4 percent to 81.27 yen, but
it was up 0.1 percent against the euro at $1.3070.
Crude oil futures fell more than $1 in early Asian trade on
Monday, reversing most of the gains made on Thursday. Oil
markets were closed on Friday due to Good Friday. Front-month
Brent crude fell as low as $122.17 from Thursday’s
settlement at $123.43 per barrel. U.S. oil slipped as low
as $102.03 from Thursday’s settlement at $103.31 a barrel.
“Price actions after the jobs data show that markets had
been excessively discounting the U.S. economic recovery and must
now fill the gap between the reality and prices built on
perceived strength of the economy,” said Naohiro Niimura, a
partner at research and consulting firm Market Risk Advisory Co.
“Markets will continue to focus on global data this week to
gauge what price levels would match the real economy. With
questions raised about the pace of U.S. growth, resurfacing
probability for further Fed stimulus will support risk assets,”
he said.
Data due this week from China, the world’s second-largest
economy after the United States, include first-quarter gross
domestic product, inflation figures and trade balance, among
others.
“The weak U.S. data has revived hopes that the Fed could
again consider additional easing measures, and investors are
also looking forward to similar action from China with it
expected to post a trade deficit this week,” said Gwak Jung-bo,
an analyst at Samsung Securities.
U.S. markets will focus on the beginning of the earnings
season, as bellwethers J.P. Morgan Chase & Co and Google
Inc are expected to report results.
U.S. earnings growth is expected to come in at 3.2 percent
for the first quarter, but that figure falls to 1.8 percent
year-over-year growth when Apple Inc, the world’s
biggest company by market value, is excluded.
Barclays Capital analysts said while the nonfarm payrolls
data undershot expectations, “job growth in cyclical sectors –
manufacturing, and leisure and hospitality – remained relatively
strong, suggesting that it is too early to conclude that
employment growth has shifted to a lower trend”.
The dollar may still be pressured as data on Friday showed
currency speculators trimmed their bets in favour of the U.S.
dollar in the latest week, while net shorts on the yen shrank
slightly from the previous week. To be short a currency is to
bet it will decline in value, while being long is a view its
value will rise.
