Stocks in Asia were mixed overnight, with the Nikkei (^N225) rising 1.2% on the day in Japan, while the Hang Seng (^HSI) fell 1.4% in Hong Kong, erasing earlier gains. The Shanghai Composite (000001.SS) was 1.2% down by the end of the session.
In South Korea, the Kospi (^KS11) added 1.4% on the day.
It came as Australia’s unemployment rate remained stable at 4.2% in August, but employment unexpectedly declined, with the economy losing approximately 5,400 jobs, including a drop of 41,000 in full-time positions, despite an increase in part-time roles.
The report implies that the labour market may be gradually softening.
There is no change to the house view of a November, February and March series of 25bps cuts to a 2.85% terminal rate but the report leans on the dovish side.
Additionally, New Zealand’s economy contracted more than anticipated in the second quarter, as weak manufacturing activity and declining export volumes largely counterbalanced modest growth in private spending.
The economy contracted 0.9% compared to the previous quarter, worse than the expected 0.3% decline, and reversing the revised 0.9% increase from the previous quarter. Furthermore, GDP decreased 0.6% year-on-year, falling short of expectations that growth would remain stable. GDP had also declined 0.6% in the first quarter.
Across the pond on Wall Street, the S&P 500 (^GSPC) fell 0.1%, and the tech-heavy Nasdaq (^IXIC) was 0.3% down after the Federal Reserve cut interest rates for the first time this year. The Dow Jones (^DJI) gained 0.6% by the close.