Australia

The ASX is set to open slightly higher this morning despite a mixed day in US markets.

ASX futures were up 0.1% or 7 points as of 8:30am on Friday, suggesting a higher open.

The S&P 500 declined Thursday for a third consecutive trading day, dragged down by concerns about the path of interest rates and a selloff in Apple shares.

The broad index pulled back 0.3%. The tech-heavy Nasdaq Composite fell 0.9%, its fourth straight negative session. The blue-chip Dow Jones Industrial was the relative outperformer, adding about 58 points, or 0.2%.

This year's expectation-defying rally has been fueled in part by optimism that the Federal Reserve might soon conclude, and even begin to reverse, its interest-rate-raising campaign as inflation wanes. Fresh data this week has stirred worries that the Fed might need to keep lifting rates to cool a still-hot US economy.

The latest jobless-claims report suggested the labor market remains tight. Initial claims fell to the lowest level since early February, marking a fourth straight week of declines, the Labor Department said Thursday. The report came after unexpectedly strong services-sector data drove a down session for stocks Wednesday.

In commodity markets, Brent crude oil fell 0.8% to US$89.92 a barrel while gold was slightly up at US$1,919.80.

In local bond markets, the yield on Australian 2 Year government bonds were slightly up at 3.86% while the 10 Year yield was up at 4.16%. US Treasury notes were lower, with the 2 Year yield at 4.95% and the 10 Year yield at 4.24%.

The Australian dollar was higher at 63.77 US cents from its previous close of 63.73. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, edged up to 99.40.

Asia

Chinese shares ended lower, as chip makers and auto-related sectors weighed on the market. Also in focus was Chinese trade data released in the morning, which showed exports declining by 8.8% in August amid continued weakness in global trade. Semiconductor Manufacturing International Corp. dropped 8.3% and NAURA Technology Group retreated 5.7%. BYD Co. dropped 0.8% and Chongqing Changan Automobile lost 2.6%. The benchmark Shanghai Composite Index ended 1.1% lower at 3122.35. The Shenzhen Composite Index declined 1.8% and the tech-heavy ChiNext Price Index shed 2.1%.

Hong Kong shares closed lower, extending opening losses, as China's exports to the rest of the world dropped for a fourth straight month in August amid softening global demand. Also in focus was the US weekly jobless claims data due later in the day. Mainland property stocks pulled back after surging the previous day on hopes of more stimulus measures from Beijing. Country Garden Holdings lost 12% and Shimao Group plunged 19%. Seminconductor and tech stocks also weighed on the market. Semiconductor Manufacturing International Corp. dropped 7.6% and Trip.com declined 3.8%. Utilities stocks lifted the market, with ENN Energy up 4.5%. The benchmark Hang Seng Index closed 1.3% lower at 18202.07. The Hang Seng Tech Index fell 2.0%.

Japanese stocks ended lower, dragged by falls in electronics stocks, as concerns resurface about the Fed's further tightening. Advantest lost 6.6% and Murata Manufacturing shedded 5.0%. The Nikkei Stock Average fell 0.8% to 32991.08. Investors are focusing on US weekly jobless claims due later in the day. The 10-year Japanese government bond yield rises half a basis point to 0.655%.

Indian shares ended higher as investors await the US weekly jobless claims due later in the day to gauge the US Federal Reserve's next move. The US services sector unexpectedly picked up in August, adding to speculation the Fed may have one rate hike left for this year, OCBC analysts said in a research note. Public-sector and infrastructure stocks led gains. Coal India surged 7.1% and Indian Railway Finance Corp. climbed 6.5%. Among stocks on the benchmark index, Larsen and Toubro rose 4.3% and IndusInd Bank gained 2.3%. Sun Pharmaceutical Industries lost 0.9% and Mahindra & Mahindra dropped 0.7%. The benchmark Sensex was 0.6% higher at 66265.56.

Europe

European stocks lack direction after overnight Asia losses and an expected slightly lower open on Wall Street. The Stoxx Europe 600 drops 0.2%, the FTSE 100 and CAC 40 gain 0.1% and the DAX retreats 0.1%. "Investors have moved into risk-off mode as concerns loom regarding the next Fed move, as well as rising oil prices that could spark an inflation revival," IG analysts write. "On today's calendar are weekly jobless claims, plus crude-oil inventories.

London's blue-chip index closed 0.21% higher at 7,441.72 points on Thursday following a slide in the pound as rate-hike bets got reduced. A weaker sterling tends to boost the FTSE 100 given that many companies within the index make part of their earnings overseas. "We've started to see a modest rebound off the lows, in what has been another choppy session, largely due to the weakness of the pound which slipped below the 1.2500 level for the first time since early June, as the FTSE 100 looks to carve out a gain for the first time in a week," CMC Markets analyst Michael Hewson said.

North America

The S&P 500 declined Thursday for a third consecutive trading day, dragged down by concerns about the path of interest rates and a selloff in Apple shares.

The broad index pulled back 0.3%. The tech-heavy Nasdaq Composite fell 0.9%, its fourth straight negative session. The blue-chip Dow Jones Industrial was the relative outperformer, adding about 58 points, or 0.2%.

This year's expectation-defying rally has been fueled in part by optimism that the Federal Reserve might soon conclude, and even begin to reverse, its interest-rate-raising campaign as inflation wanes. Fresh data this week has stirred worries that the Fed might need to keep lifting rates to cool a still-hot US economy.

The latest jobless-claims report suggested the labor market remains tight. Initial claims fell to the lowest level since early February, marking a fourth straight week of declines, the Labor Department said Thursday. The report came after unexpectedly strong services-sector data drove a down session for stocks Wednesday.

"The fear is that the labor market is so hot and so strong that it could open the door for more hikes later this year," said Ryan Detrick, chief market strategist at the Carson Group.

Traders overwhelmingly believe the Fed will hold rates at current levels in its September policy meeting, but are split on whether officials will lift rates in November. Federal-funds futures reflect a roughly 40% chance of a 0.25-percentage-point increase in November, up from a 29% probability a month ago, according to the CME Group's FedWatch Tool.

Also weighing on the S&P 500 and the Nasdaq, Apple shares continued to tumble. The stock fell 2.9%, with Apple shedding nearly $190 billion in market value over the last two days. The Wall Street Journal reported China has ordered officials at central government agencies not to use iPhones at work. Meanwhile, a new Huawei phone is gaining notice in China.

Concerns about Apple spilled over into the performance of other megacap tech stocks Thursday. Nvidia declined 1.7% and Microsoft shed 0.9%. The information-technology sector was the worst-performing segment of the S&P 500, down 1.6%.

"If Apple could be hurt by this, nobody is safe," said Scott Ladner, chief investment officer at Horizon Investments.

Utility stocks proved the best-performing sector in the S&P 500 on Thursday, a sign of the risk-off mood among investors. The sector rose 1.3%, in its best day since July. Utilities are typically thought of as defensive stocks that tend to hold up better when the market is rocky. This year, the sector has struggled.

Real-estate and healthcare stocks were also among the session's gainers, breaking from their year-to-date lagging performance.

"Growth is taking a breather," said Jon Maier, chief investment officer of Global X ETFs. "Value is taking the lead short term."

Shares of Walt Disney dropped to $80.57, their lowest closing price since 2014. The firm is contending with Hollywood strikes and a dispute over fees with cable operator Charter Communications as well as the prospect of sustained losses in its TV and streaming businesses.

AMC Entertainment shares sank to a fresh record low, continuing their decline after the movie theater chain announced a plan to sell up to 40 million common shares.

In the bond market, the 10-year US Treasury yield eased to 4.260%, from 4.289% on Wednesday.

Meanwhile, oil benchmark Brent crude fell about 0.8% to $89.92 a barrel.