Asian Stocks Slip Ahead of US Economic Reports

Tokyo, Dec 5 (AP) Asian shares declined on Tuesday on heavy selling of property and technology shares.

US futures slipped and oil prices were little changed.

Hong Kong's Hang Seng dropped 2.4 per cent to 16,238.79, while the Shanghai Composite lost 1.7 per cent to 2,972.30 as worries flared over weakness in the Chinese economy.

Japan's benchmark Nikkei 225 slipped 1.4 per cent to finish at 32,775.82. Australia's S&P/ASX 200 dipped 0.9 per cent to 7,061.60. South Korea's Kospi shed 0.8 per cent to 2,494.28.

A key report on Japanese inflation showed core consumer prices in Tokyo, which excludes volatile food prices, rose 2.3 per cent from a year ago, slowing from previous months' increases.

On Monday, the S&P 500 closed 0.5 per cent lower. The benchmark index was coming off its best month in more than a year, and reached its highest level since March 2022 on Friday.

The Dow Jones Industrial Average slipped 0.1 per cent, while the Nasdaq composite dropped 0.8 per cent.

Treasury yields rose broadly, putting some pressure on stocks. The yield on the 10-year Treasury, which influences mortgage rates, climbed to 4.25 per cent from 4.21 per cent late Friday.

Technology and communication services companies were the biggest weights on the market. Microsoft fell 1.4 per cent, Nvidia dropped 2.7 per cent, Meta Platforms slid 1.5 per cent and Netflix lost 2.5 per cent.

Alaska Air Group slumped 14.2 per cent after announcing it will buy Hawaiian Airlines for USD 1 billion in cash plus the assumption of debt. The deal would test the Biden administration as it fights consolidation in the airline sector.

Spotify surged 7.5 per cent after announcing its third round of layoffs this year. Uber gained 2.2 per cent after the ride-hailing service was named to join the S&P 500 index.

Hopes that inflation is easing enough to allow the Federal Reserve to stop raising interest rates have pushed shares higher in recent weeks. Investors are also hoping that the economy remains strong enough to avoid a recession.

This week will bring several key updates on the economy.

The Institute for Supply Management will release its November report on the services sector on Tuesday. The sector is a key component in the US economy and accounts for the majority of the nation's jobs. The report could provide more insight into consumer spending and the jobs market.

The government will release its October update on job openings on Tuesday and a weekly report on applications for unemployment benefits on Thursday.

The government's monthly jobs report for November is due on Friday. Analysts polled by FactSet expect US employers to have added 175,000 jobs last month. They forecast that the unemployment rate remained steady at 3.9 per cent.

The labour market has remained strong in the US even as the Fed has raised interest rates sharply in order to fight inflation by slowing the entire economy. Inflation has been falling since the middle of 2022. The central bank paused raising rates after its most recent increase in late July.

In energy trading, benchmark US crude added 7 cents to USD 73.11 a barrel. It fell 1.4 per cent on Monday. Brent crude, the international standard, picked up 4 cents to USD 78.07 a barrel.

In currency trading, the US dollar fell to 146.85 Japanese yen from 147.19 yen. The euro cost USD 1.0844, up from USD 1.0838. (AP)