Asian stocks tread water as investors await U.S. jobs report

Asian shares were broadly weaker early Thursday, as markets cautiously awaited the release of U.S. jobs data that could jolt markets out of their summer malaise.

The Nikkei Stock Average NIK, +0.14% was flat, while the South Korea Kospi SEU, -0.36% fell 0.7% and Australia’s S&P/ASX 200 XJO, -0.11% was down 0.3%.

“Markets are treading water ahead of US non-farm payroll data tomorrow night,” wrote ANZ Research analysts in a note.

A recent report from payroll processor ADP, which showed private U.S. employers continued to hire at a solid clip in August by adding 177,000 workers, raised hopes for a strong showing in U.S. non-farm payrolls, the next test of the likelihood of an interest-rate rise.

Investors remain concerned that higher U.S. rates could lead to capital outflows from Asia’s emerging markets, though analysts say that the economic fundamentals in the region are still strong.

Elsewhere, energy stocks in commodity-reliant economies were hard hit after Brent crude, the global oil benchmark, hit a three-week low. The U.S. Energy Information Administration said overnight that U.S. stockpiles of crude oil and refined products jumped by 4.5 million barrels in the week ended Aug. 26 to more than 1.4 billion barrels.

In Australia, shares of oil producer Santos Ltd. STO, -2.70% was down 1.7%, while Woodside Petroleum WPL, -1.12% was off 1.5% and Oil Search OSH, -1.12% fell 1.8%, dragging the overall performance of the benchmark index.

Among other energy-focused markets, the FTSE Bursa Malaysia Index FBMKLCI, -0.37% was last down 0.3%. Oil prices attempted to claw back gains, but analysts say they are skeptical about sustainable areas of price support in the heavily oversupplied market.

Earlier on Thursday, China released manufacturing data for August, with the official purchasing managers’ index coming in at 50.4, versus 49.9 in July, the highest in 22 months and indicating a slight expansion in the economy.

However, the Caixin China manufacturing purchasing managers’ index, a private gauge of nationwide factory activity, fell to 5 0.0 in August from 50.6 in July but still showed an expansion.

Still, the August data helped drive gains in Hong Kong, with the Hang Seng Index HSI, +0.51% reversing early losses to rise around 0.3%. Meanwhile, the Shanghai Composite Index SHCOMP, -0.15% and the Shenzhen Composite Index 399106, -0.07% were roughly flat.






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