Asian markets drop as US jobs data stoke recession fears

Avbob Investment Plan
HONG KONG – Asian markets retreated on Monday after another batch of worse-than-expected US jobs data revived fears of a possible recession in the world’s top economy.
The big miss in the August non-farm payrolls reading was compounded by heavily revised-down figures for the previous two months and ramped-up bets on a Federal Reserve interest rate cut next week.
A disappointing revenue forecast from chipmaker Broadcom added to the negative sentiment, dealing another blow to a tech sector already under pressure over concerns a rally this year may have been overdone.
The highly anticipated report Friday showed an estimated 142,000 jobs were created in the United States last month, up on July but well off forecasts.
Traders have been on edge since the July figures, which helped spark a market rut on speculation that the Fed may have waited too long to cut borrowing costs as it focused on bringing inflation down.
After last month’s result, some analysts pointed to the “Sahm Rule,” which says an economy is in the early stages of recession if the three-month moving average of unemployment is 0.5 percentage points above its low over the previous 12 months.
Wall Street’s three main indexes tumbled Friday on the latest news and pushed the dollar down against its main peers.
With the central bank set to decide next week, debate is centred on whether it will reduce rates by 25 or 50 basis points.
In Asian trade, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Taipei and Jakarta all fell, though there were gains in Mumbai, Singapore and Bangkook.
Tech firms again took a hit following heavy losses in their US peers, though bargain-buying helped them pare the morning’s bigger falls.