Asian shares turned lower on Monday as relief over the benign U.S. jobs report was chilled by caution ahead of key inflation data later this week, while a coronavirus outbreak in Taiwan took a toll on chip manufacturers.
Investors were wary on how shares of major tech firms would react to the G7’s agreement on a minimum global corporate tax rate of at least 15%, though getting the approval of the whole G20 could be a tall order.
So far, the reaction was muted with both Nasdaq and S&P 500 futures down 0.2%. EUROSTOXX 50 futures and FTSE futures eased 0.1%.
Also of interest will be the tussle over U.S. President Joe Biden’s proposed $1.7 trillion infrastructure plan with the White House rejecting the latest Republican offer.
MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3% and risked a fourth session of losses. Japan’s Nikkei edged up 0.2% and touched its highest in almost a month.
Taiwan stocks lost 1.7% as a spike in COVID-19 cases hit three tech companies in northern Taiwan, including chip packager King Yuan Electronics.
Chinese blue chips were off 0.3% ahead of data on exports and imports for May.
While the 559,000 rise in U.S. payrolls missed forecasts it was still a major relief after April’s shockingly weak report, while the jobless rate at 5.8% showed there was still a long way to go to reach the Fed’s goal of full employment.