Asian stocks mixed as markets brace for crucial reading on US economy; Europe higher

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Asia stocks mixed before jobs report; Europe gains

BANGKOK — Asian stocks were mixed Friday as markets braced for U.S. jobs figures that will give a crucial reading on whether the recovery in the world’s No. 1 economy is broadening. European shares rose.

The lackluster showing in Asia came after big gains the day before when positive U.S. housing figures gave investors enough confidence to snap up riskier assets like shares following a monthlong slide.

Oil prices, meanwhile, headed toward $75 a barrel as signs of rising demand in the U.S. fueled hopes of continued economic recovery. The dollar gained against the yen and was lower versus the euro.

The U.S. employment report due later Friday is the most closely watched item on the economic calendar. Evidence the U.S. economic recovery is taking deeper root would give markets some respite from worries about Europe’s debt crisis and the prospect of slowing growth in China.

Economists predict that employers added 513,000 jobs in May. It would be the biggest jump in 26 years, but as many as 300,000 of the workers hired during the month were expected to be temporary positions to help conduct the U.S. census. Still, even temporary hiring could bring a bump in consumer spending.

As trading got started in Europe, benchmarks in Britain, France and Germany were up nearly 1 percent. Futures pointed to slight gains on Wall Street with Dow futures up 8 points, or 0.1 percent, at 10,266.

In Asia, Japan’s Nikkei 225 stock average fell 13 points, or 0.1 percent, to 9,901.19 amid news that Finance Minister Naoto Kan had been elected prime minister, replacing the deeply unpopular Yukio Hatoyama ahead of upper house elections in July.

In Hong Kong, the Hang Seng index shed 6.64, or less than 0.1 percent, to 19,780.07 while Australia’s benchmark retreated 0.8 percent to 4,449.40. South Korea’s Kospi advanced 0.1 percent to 1,664.13 and markets in Singapore, Thailand and the Philippines also gained.

China’s Shanghai Composite Index closed flat at 2,553.59 amid concerns that rapid economic growth might slow if Europe’s debt troubles hurt demand for exports.

“Most investors are holding on a wait-and-see position, especially after the manufacturing sector showed signs of sluggishness,” said Zheng Gang, an analyst for Yingda Securities in the southern business hub of Shenzhen.

In the U.S. on Thursday, the Dow rose 5.74, or 0.1 percent, to 10,255.28. The Dow’s two-day gain of 231 points, or 2.3 percent, was the first since April 28-29.

The Standard & Poor’s 500 index rose 4.45, or 0.4 percent, to 1,102.83, while the technology-focused Nasdaq composite index rose 21.96, or 1 percent, to 2,303.03.

Benchmark crude for July delivery was up 13 cents at $74.74 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.75 to settle at $74.61 on Thursday.

In currencies, the dollar rose to 92.82 yen from 92.58 yen in New York on Thursday. The euro advanced to $1.2199 from $1.2161.

Associated Press researcher Bonnie Cao in Beijing contributed to this report.