Asian stocks mostly lower as markets brace for crucial reading on US economic recovery

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Asian markets lower ahead of US jobs report

BANGKOK — Asian stocks were mostly lower 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.

The modest decline in the region’s markets 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, gave up some of Thursday’s gains but held above $74 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 in May were expected to be temporary positions to help conduct the U.S. census. Still, even temporary hiring could bring a bump in consumer spending.

Japan’s Nikkei 225 stock average was down 18.73 points, or 0.2 percent, at 9,895.46 amid news that Finance Minister Naoto Kan had been elected leader of the ruling party, paving his way to replace the deeply unpopular Yukio Hatoyama as prime minister ahead of upper house elections in July.

In Hong Kong, the Hang Seng index was off 60.23, or 0.3 percent, at 19,726.48 while Australia’s benchmark shed 1 percent to 4,441.80. South Korea’s Kospi bucked the trend, rising 0.2 percent to 1,664.68 while markets in China, Singapore, Taiwan and Malaysia posted slight losses.

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 down 37 cents at $74.24 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 92.69 yen from 92.58 yen in New York on Thursday. The euro advanced to $1.2174 from $1.2161.