Asian stocks fell Thursday after a weak economic reading in the U.S. weighed on Wall Street and as a Japanese survey showed manufacturers still think they have too many workers.
Markets in China and Hong Kong were closed for a holiday. Oil prices slipped below $70 a barrel after rallying overnight, while the dollar gained against the yen.
Keeping a lid on investor sentiment was a mediocre session in the U.S., where major indexes closed slightly lower after a key measure of manufacturing dropped more than expected in September {mdash} further evidence of the troubles plaguing the world’s largest economy as it emerges from recession.
Economic readings from Asia were mixed. Surveys showed Chinese manufacturing is expanding and big manufacturers in Japan were less pessimistic. Yet after making drastic cuts to workers, Japanese companies still say they have too many employees and too much production capacity.
“We’re still on the less bad trend, but it’s a good time to take some money of the table,” said Song Seng Wun, economist at CIMB—GK in Singapore. “After a very decent September, we’ll have to regroup and rethink our strategy for the next quarter.”
In Japan, the Nikkei 225 stock average dropped 156.18, or 1.5 percent, to 9,977.05 and South Korea’s Kospi fell 28.42 points, or 1.7 percent, to 1,643.50.
Markets in Australia and Singapore were lower, but Taiwan’s index edged up.
Hong Kong and mainland China markets were closed for the 60th anniversary of Communist rule. Hong Kong reopens Friday but mainland markets are closed until October 9.
On Wednesday in the U.S., the Dow ended down 29.92, or 0.3 percent, at 9,712.28 after falling nearly 134 points.
The S&P 500 index fell 3.53, or 0.3 percent, to 1,057.08. The Nasdaq fell 1.62, or 0.1 percent, to 2,122.42.
Crude oil prices traded lower in Asian trade, with benchmark crude for November delivery off 68 cents at $69.93. The contract soared $3.90 overnight.
In currencies, the dollar was higher at 89.95 yen from 89.70 yen. The euro slipped to $1.4626 from $1.4636.
