Asian stocks trail Wall Street lower after US jobs report

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BEIJING — Asian stock markets fell largely on Monday after Wall Street ended lower last week and China tightened antivirus controls.

Tokyo, Hong Kong and South Korea fell. Shanghai won. The price of oil rose by $2 a barrel, while the euro was lower.

The Wall Street S BenchmarkThe &P 500 index ended Friday, after US government data showed hiring slowed in August. The number of jobs added was still high enough that forecasters said the Federal Reserve could see it as evidence that more rate hikes are needed to drive down inflation, which is at a four-decade high.

“Markets have given up early optimism for an ominous feel,” Mizuho Bank’s Tan Boon Heng said in a report.

The Shanghai Composite Index rose 0.2% to 3,193.46 after traffic controls were tightened in Shenzhen’s southern business center following virus outbreaks.

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The Nikkei 225 in Tokyo lost less than 0.1% to 27,646.27 while the Hang Seng in Hong Kong fell 1.3% to 19,203.24.

The Kospi in Seoul lost 0.3% to 2,403.12 while the S . from Sydney&P-ASX 200 added 0.3% to 6,846.70.

New Zealand and Bangkok fell while Singapore and Indonesia advanced.

Traders are watching the Fed uncomfortably after Chairman Jerome Powell said interest rates must remain high on Aug. 26 to curb rising inflation. Those lost hopes that the Fed could backtrack on signs that economic activity in the US is cooling.

The Fed has raised interest rates four times this year, twice by 0.75 percentage points, tripling the usual margin.

Central banks in Europe and Asia have also raised interest rates, fueling fears they could derail global economic growth.

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On Wall Street, the Dow Jones Industrial Average also fell 1.1% on Friday after the Labor Department reported the US economy added 315,000 jobs in August. That was significantly less than July’s 526,000, but average hourly wages rose by an unusually wide margin of 5.2% from a year earlier.

Forecasters warned that high wage increases could bolster the Fed’s belief that more aggressive rate hikes are needed.

The Nasdaq composite lost 1.3%.

The US market has given up on many of the gains made in July and August, as traders hoped the Fed would ease.

Traders expect another 0.75 percentage point rate hike at this month’s Fed meeting, CME Group said.

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Also on Friday, Russian state energy giant Gazprom announced that the suspension of gas supplies via the Nord Stream 1 pipeline to Germany may be extended. The company said last Wednesday that the gas flow would be halted for three days due to urgent maintenance work.

In the energy markets, the US benchmark crude gained $1.88 to $88.75 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 26 cents to $86.87 on Friday. Brent oil, the price base for international oil trade, added $2.14 to $95.16 a barrel in London. It advanced 66 cents from the previous session to $93.02.

The dollar rose to 140.33 yen from 140.13 yen on Friday. The euro fell from 99.64 cents to 99.08 cents.