Investing.com - Asian shares were mixed on Thursday with U.S. nonfarm payrolls the key focus across markets generally braced for the Federal Reserve to hike interest rates this month for the first time in nearly a decade.
The Nikkei 225 fell 0.22%, while the S&P/ASX 200 eased 0.64% and the Shanghai Composite gained 0.60%.
Australia reported HIA New Home Sales for October fell 3.0% month-on-month as well as trade data that showed a deficit of A$3.305 billion, wider than the deficit of A$2.665 billion seen for October.
Earlier, the AIG Services Index came in at 48.2 in November, down from 48.9 the previous month.
The Caixin China Services PMI for November fell to 51.2, compared to 53.1 expected.
Overnight, U.S. stocks fell broadly on Wednesday as strong employment data and hawkish comments from Federal Reserve chair Janet Yellen bolstered possibilities for a December rate hike, offsetting gains from a potential shakeup at YHOO.
Investors also reacted to sharp declines in crude prices and reports of a mass-shooting east of Los Angeles on Wednesday afternoon, just before the close of trading.
The Dow Jones Industrial Average fell 158.67 or 0.89% to 17,729.68, as shares in Exxon Mobil Corporation (N:N:XOM) and Chevron Corporation (N:N:CVX) weighed. A steady build in U.S. crude inventories and a strong dollar that surged to yearly-highs on Wednesday pushed crude futures below $40 a barrel, its lowest closing level since late-August. With the sell-off in the afternoon session, the Dow fell back into negative territory for the year.
The NASDAQ Composite index also lost 33.09 or 0.64% to end the session at 5,123.22. Earlier on Wednesday, the NASDAQ rose to four and a half month highs after the Wall Street Journal reported that Yahoo (O:O:YHOO) could sell its core Internet assets and decide the fate of CEO Marissa Mayer's future with the company when it meets later this week.
The S&P 500 Composite index, meanwhile, dropped by 23.12 or 1.10% to 2,079.51, as all 10 of its sectors closed in the red. Stocks in the energy and utilities industries lagged, each falling by more than 2%.
In an address before the Economic Club of Washington on Wednesday afternoon, Yellen indicated that a wave of economic and financial data since the Fed last met in October has fallen in line with its expectations of improvements in the U.S. labor market. Yellen also noted that waiting to normalize monetary policy much longer could encourage excessive risk-taking and could inadvertently create the potential for recession. The Fed chair cautioned that unexpected economic developments ahead of its two-day meeting on Dec. 15-16 could sway its decision.
A rate hike is generally viewed as bearish for equities, as investors exit from their positions in favor of higher yields in the fixed income markets.