Stock markets fall ahead of critical US data, dollar nears record

While many stock markets in Asia fell ahead of today's US nonfarm payrolls release, the dollar is trading near record highs. Japan's Topix index fell 0.3 percent, Hong Kong's Hang Seng fell 1.2 percent, South Korea's Kospi fell 0.1 percent, and China's Shanghai Stock Exchange fell 0.2 percent. US stock markets reversed their four-day decline yesterday, while US futures are down today. Today's US data is expected to show that employment continues to be healthy. Employment is expected to increase by 298,000. Strong data could also strengthen expectations for a 75 basis point rate hike by the Fed. The Bloomberg Global Cumulative Total Return Index fell 20 percent from its peak for the first time since it began publication in 1990. The price of a barrel of Brent crude oil rose more than 1 percent to above $93, while the ounce of gold is at $1,701.75. The Bloomberg Dollar Spot Index is trading sideways, close to a record. The euro rose 0.2 percent against the dollar, while the offshore yuan rose 0.1 percent. “There’s not much reason to be bullish in this environment for the coming weeks and months. Long-term, these levels could be profitable,” said Meera Pandit, global markets strategist at JPMorgan Asset Management.