Investing.com - Stocks in Asia fell on Friday, with Australia
leading the losses.
The S&P/ASX 200 lost 1.2% in Sydney after stocks on Wall
Street experienced their biggest one-day decline since February.
Elsewhere in Asia, Japan's Nikkei 225 lost 0.5% and South Korea's
Kospi was 0.2% lower.
The earnings season rolled on in Japan, with Sony Corp. jumping
5.5% higher in Tokyo after the electronics firm posted a small net
profit in the quarter ended June 30, defying analyst expectations
of a loss.
Overnight, U.S. stocks dropped on concerns that labor costs are
on the rise in the U.S. while fears that Argentina's default on its
debts may roil markets with contagion fears adding to the
The Dow 30 fell 1.88%, the S&P 500 index fell 2.00%, while
the NASDAQ Composite index fell 2.09%.
Argentina earlier failed to agree to debt restructuring terms
with creditors and fell into its second default since 2002, which
sent stocks prices tumbling despite solid U.S. data.
Fears the Argentine default will roil markets already sensitive
to conflict in Ukraine, Gaza and elsewhere in the Middle East
bruised all three major indices.
Rising labor costs in the U.S. exacerbated the meltdown by
reminding investors interest rates will go up in the U.S. possibly
at a time when the global economy faces clouds on its horizon.
The Labor Department reported earlier that its employment cost
index rose by 0.7% in the three months to June after a 0.3%
increase in the first quarter. Economists had expected a 0.5%
The Labor Department also reported that the number of
individuals filing for unemployment assistance in the U.S. last
week rose by 23,000 to 302,000 from the previous week's total of
279,000. Analysts had expected jobless claims to rise by 22,000 to
Hopes that Friday's July jobs will report will come in solid
took a backseat to Argentine financial woes and fears of subsequent
On Friday, markets will move on the U.S. nonfarm payrolls and
the unemployment reports, while the Institute of Supply Management
is to release data on manufacturing activity.
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