Stock markets slump around the world after U.S. employment figures show many Americans have given up looking for work
Stock markets fell sharply today
after weaker than expected U.S. jobs figures raised concern about the
recovery in the world's largest economy.
Attention was focused on the U.S. data, which showed an increase of only 88,000 jobs in March - far below the expected rise of about 195,000.
Although the unemployment rate fell to 7.6 percent from 7.7 percent, that was only because more people gave up looking for work.
Britain's FTSE 100 fell 2 percent to
6,218.9 while Germany's DAX dropped 2.2 percent to 7,651.12. France's
CAC lost 2.2 percent to 3,644.89.
Wall Street opened lower, with the Dow shedding 1 percent to 14,467.62 and the broader S&P 500 down by the same rate at 1,543.96.
Analysts said the figures showed the U.S. recovery, which had been advancing at a good pace in recent months, would be uneven. They suggested it would be only a temporary slowdown, however.
'We don't anticipate the slowdown becoming too severe, not when the housing recovery is firing on all cylinders, but it is a reminder that the U.S. is still unable to sustain what used to be just average rates of growth,' said Paul Ashworth, chief U.S. economist at Capital Economics.
The Bureau of Labor Statistics' so-called 'U-3' unemployment rate that the U.S. government uses as its official measurement is a simple ratio that only includes unemployed people who are actively engaged in the workforce.
Those who stop looking for work - usually to live off pensions or government benefits or limit their household's income to a single earner - aren't included.
Once those are included, the unemployment rate rises to 13.8 per cent.
Earlier, the attention in markets had
been on Japan, where the Nikkei hit a four-year high after the central
bank's new governor, Haruhiko Kuroda, unveiled plans to pump huge
amounts of money into the financial system to spur price rises, spending
and borrowing in an economy that has stagnated for years.
The central bank said it wanted to double the money supply and achieve a 2 percent inflation target within about two years.
The Nikkei 225 in Tokyo closed 1.6 percent higher at 12,833.64, its highest finish since Sept. 1, 2008. Earlier in the day it surged more than 3 percent, breaking the 13,000 level.
Stock markets in Asia outside of Japan sagged, however.
Hong Kong's Hang Seng tumbled 2.7 percent to 21,726.90. Analysts said the fall reflected some nervousness about a recent outbreak of deadly bird flu in China.
Six people have died and authorities have ordered the slaughter of all poultry at a Shanghai market where the virus was detected. The news hurt tourism and travel-related shares.
Hong Kong-listed Air China plunged 9.8 percent and China Southern Airlines sank 8.5 percent.
South Korea's Kospi dropped 1.6 percent to 1,927.23, dragged down by political jitters over the latest tensions with Pyongyang.
Australia's S&P/ASX 200 lost 0.5 percent to 4,891.40 as investors took profits after recent rallies.
Attention was focused on the U.S. data, which showed an increase of only 88,000 jobs in March - far below the expected rise of about 195,000.
Although the unemployment rate fell to 7.6 percent from 7.7 percent, that was only because more people gave up looking for work.
The graph shows the erratic increase in the number of jobs per month over the last two years
Wall Street opened lower, with the Dow shedding 1 percent to 14,467.62 and the broader S&P 500 down by the same rate at 1,543.96.
Analysts said the figures showed the U.S. recovery, which had been advancing at a good pace in recent months, would be uneven. They suggested it would be only a temporary slowdown, however.
'We don't anticipate the slowdown becoming too severe, not when the housing recovery is firing on all cylinders, but it is a reminder that the U.S. is still unable to sustain what used to be just average rates of growth,' said Paul Ashworth, chief U.S. economist at Capital Economics.
The Bureau of Labor Statistics' so-called 'U-3' unemployment rate that the U.S. government uses as its official measurement is a simple ratio that only includes unemployed people who are actively engaged in the workforce.
Those who stop looking for work - usually to live off pensions or government benefits or limit their household's income to a single earner - aren't included.
Once those are included, the unemployment rate rises to 13.8 per cent.
Job seekers adjust their paperwork as they wait
in line to attend a job fair in New York. Today's figures show many
Americans have given up searching for employment
The central bank said it wanted to double the money supply and achieve a 2 percent inflation target within about two years.
The Nikkei 225 in Tokyo closed 1.6 percent higher at 12,833.64, its highest finish since Sept. 1, 2008. Earlier in the day it surged more than 3 percent, breaking the 13,000 level.
Stock markets in Asia outside of Japan sagged, however.
Hong Kong's Hang Seng tumbled 2.7 percent to 21,726.90. Analysts said the fall reflected some nervousness about a recent outbreak of deadly bird flu in China.
Six people have died and authorities have ordered the slaughter of all poultry at a Shanghai market where the virus was detected. The news hurt tourism and travel-related shares.
Hong Kong-listed Air China plunged 9.8 percent and China Southern Airlines sank 8.5 percent.
South Korea's Kospi dropped 1.6 percent to 1,927.23, dragged down by political jitters over the latest tensions with Pyongyang.
Australia's S&P/ASX 200 lost 0.5 percent to 4,891.40 as investors took profits after recent rallies.