Global shares trade mostly lower as investors wait for key US jobs report

TOKYO — Global stocks were largely lower on Tuesday as investors looked ahead to a key U.S. employment report due later this week.

France’s CAC 40 fell nearly 0.1% in early trading to 7,639.70, while Germany’s DAX fell 0.3% to 18,879.26. Britain’s FTSE 100 lost 0.2% to 8,347.88. U.S. stocks were set to fall, with Dow futures down 0.5% to 41,466.00. S&P500 futures fell 0.5% to 5,633.25.

Japan’s benchmark Nikkei 225 pared earlier gains to close less than 0.1% lower at 38,686.31, while Australia’s S&P/ASX 200 fell less than 0.1% to 8,103.20.

The closely watched US jobs data is expected to influence the Federal Reserve’s reading of the US economy and when it will cut interest rates. The move will have implications for global markets, including Asia.

“It looks set to be an important litmus test. A stronger-than-expected payrolls figure, coupled with a lower unemployment rate, could give the market some much-needed confidence, suggesting that growth risks are abating, at least for now,” said Stephen Innes, analyst at SPI Asset Management.

“If the report disappoints, especially if it pushes up the unemployment rate, we could quickly see growth concerns flare up again.”

South Korea’s Kospi initially rose after a report showed consumer inflation slowed to the lowest level in more than three years in August, supporting expectations of monetary policy easing. The Kospi later fell 0.6% to 2,664.63.

South Korea’s consumer price index (CPI) rose 0.4% from the previous month and 2.0% from a year earlier, after rising 0.3% from a month earlier and 2.6% year-on-year in July.

Hong Kong’s Hang Seng fell 0.2% to 17,651.49, while the Shanghai Composite fell 0.3% to 2,802.98.

There were also growing concerns about the resilience of the Chinese economy, recently released data showed a mixed pictureWeak earnings reports from Chinese companies including real estate developer and investor New World Development Co. added to the pessimism.

In energy trading, U.S. benchmark crude fell 5 cents to $73.50 a barrel. Brent crude, the international standard, lost 71 cents to $76.81 a barrel.

In currency trading, the US dollar fell to 145.89 Japanese yen from 146.89 yen. The euro was worth $1.1039, down from $1.1074.

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Yuri Kageyama is on X: https://x.com/yurikageyama