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Global shares mixed as Fed rate hike seen as less likely

TOKYO – Global shares were mixed Monday after a U.S. report showing slowing hiring was seen as making a Federal Reserve interest rate hike less likely.

KEEPING SCORE: France’s CAC 40 was up 0.3 per cent at 4,432.89 in early trading, while Germany’s DAX gained 0.4 per cent to 10,144.12. Britain’s FTSE 100 gained 0.8 per cent to 6,259.91. U.S. shares were set to drift higher, with Dow futures up 0.2 per cent at 17,835 and S&P 500 futures also up 0.2 per cent at 2,101.10.

ASIA’S DAY: Japan’s benchmark Nikkei 225 fell nearly 0.4 per cent to finish at 16,580.03. Hong Kong’s Hang Seng added 0.4 per cent to 21,036.24, and the Shanghai Composite edged down 0.2 per cent to 2,934.10. Trading was closed in South Korea for a holiday.

U.S. FACTOR: Downbeat jobs data released Friday appeared to convince traders that the Federal Reserve will keep interest rates low longer than previously expected. It also stirred concerns that the U.S. economy is slowing. The Labor Department reported that the economy added 38,000 jobs in May, the fewest in five years.

THE QUOTE: The U.S. employment figure “not only derails a potential summer Fed hike, but also increases the odds of the Fed remaining on hold through 2016, let alone two rate hikes. Employment has been the backbone of the U.S. economy over the last year, and the employment report has been a lifeboat for the Fed when other fundamental indicators turn unsupportive. Where to from here?” said Stephen Innes, senior trader at OANDA Asia Pacific.

ENERGY: Benchmark U.S. crude oil rose 56 cents to $49.18 a barrel in New York. Brent crude, which is used to price international oils, gained 56 cents to $50.20 a barrel in London.

CURRENCIES: The dollar traded at 107.18 yen, down from 108.92 yen late last week in Asia. The euro stood at $1.1357, up from $1.1155.

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Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

Her work can be found at http://bigstory.ap.org/content/yuri-kageyama

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This story has been corrected to show that South Korean markets were closed Monday for a holiday.