Asian stock markets fall after European slump, Wall Street succumbs to US job worries

Asian shares fall after jump in US jobless claims

TOKYO — Asian stock markets mostly fell Friday after a jump in U.S. unemployment claims provided more evidence of an anemic recovery in the world’s biggest economy.

Japanese stocks, closed the previous day for a holiday, were lower amid renewed strength in the yen and news of Chinese restrictions on exports to Japan of rare earth elements which are used in advanced manufacturing.

Sentiment in Asia was generally downbeat after new U.S. figures showed applications for unemployment benefits rose unexpectedly last week. The U.S. is a key market for Asia and a prolonged period of slow growth there could weigh on the profits of the region’s exporters.

Adding to the gloom was a lower reading on business activity in the 16 countries that use the euro and news that Ireland’s economy shrank 1.2 percent in the second quarter.

The Nikkei 225 stock average lost 1.3 percent to 9,446.71. A strong yen kept pressure on exporters and technology shares, with Honda Motor Co. down 1 percent and camera maker Canon Inc. tumbling 1.8 percent.

Reports of Chinese restrictions on shipments of rare earths — metallic elements such as Lanthanum and Gadolinium that are crucial for superconductors, computers and hybrid electric cars — pummeled some high-tech companies. Shares of Shin-Etsu Chemical Co., which makes rare earth magnets, tumbled 3.1 percent and Hitachi Metals Ltd. retreated 2.9 percent.

Elsewhere, Hong Kong’s Hang Seng index rose 0.1 percent to 22,064.27 while Australia’s S&P/ASX 200 fell 0.6 percent to 4,608.10.

Benchmarks in Taiwan, Singapore, Malaysia and New Zealand also declined. South Korea’s Kospi posted a modest rise. Financial markets in mainland China are closed Friday for a national holiday.

The Dow Jones industrial average on Thursday fell 76.89, or 0.7 percent, to close at 10,662.42.

The Standard & Poor’s 500 index fell 9.45, or 0.8 percent, to 1,124.83, falling back below a closely watched threshold of 1,131. That had been the high end of its recent trading range until Monday, when the index charged above that level and stayed there, something analysts see as a bullish sign. Prior to Monday, the S&P had only crossed above 1,131 one time since June 21.

The Nasdaq composite index fell 7.47, or 0.3 percent, to 2,327.08.

In currencies, the dollar inched up to 84.54 yen from 84.50 yen. The euro rose to $1.3340 from $1.3319.

Benchmark crude for November delivery was down 25 cents at $74.93 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 47 cents to settle at $75.18 on Thursday.