BANGKOK- Asian stock markets were mixed Monday in light trading as a disappointing jobs report from the US.and concerns over bank lending and slackening growth in China sparked investor unease. Oil prices rose to nearly $73 a barrel in Asia as investors worried about a weak US economic recovery. The dollar was up against the yen, and the euro also weakened. While key indexes in Japan and South Korea rose slightly, many traders watched from the sidelines, waiting out Monday's holiday in the US amid a scarcity of positive economic news. "People are waiting for some breakthrough, like a reversal in China or an indicator in the US to show the economy is on track to recover," said Jackson Wong, vice president at Tanrich Securities in Hong Kong. "People are a little scared to buy right now." Worries that massive bank lending in China last year, intended to support Beijing's stimulus program, may spark a wave of defaults was also weighing on investor sentiment, Wong said. Analysts worry that Chinese companies overspent on factories and other assets and may be unable to repay their debts. Also, local government finance agencies borrowed heavily for infrastructure and other projects, and the World Bank and Chinese regulators say lenders might face losses if those agencies default. Japan's benchmark Nikkei 225 stock index added 61.94 points, or 0.7 per cent, to 9,265.40. Kazuhiro Takahashi, an equity strategist at Daiwa SMBC Securities Co. Ltd., said the Nikkei climbed on bargain-hunting following earlier losses. "Investors chased gains in exporters, but many took a wait-and-see stance as the US financial markets are closed Monday," Takahashi said. "The disappointing US jobs report was a fresh sign that the pace of the U.S. economic recovery is slower than expected." South Korea's Kospi increased 0.2 per cent, to 1,675.70, and Australia's S&P/ASX 200 was down 0.2 per cent at 4,231.1. Elsewhere, Hong Kong's Hang Seng index fell 0.2 percent to 19,859.94 and the Shanghai Composite Index declined 1.6 per cent at 2,344.23. Markets in Taiwan and New Zealand edged up. Investors in Asia were also reluctant to chase gains after the Dow Jones industrial average fell 46.05 points, or 0.5 per cent, to 9,686.48 Friday, the seventh-straight day of decline. It was also the longest losing streak since the height of the financial crisis in October 2008. Sentiment turned downbeat on Wall Street after the US government said Friday private employers added only 83,000 jobs last month, fewer than the 112,000 analysts had forecast. In currencies, the dollar rose to 87.90 yen from 87.70 yen in New York late Friday. The euro declined to $1.2537 from $1.2556. Benchmark crude for August delivery was up 38 cents to $72.52 a barrel in electronic trading on the New York Mercantile Exchange. The contract lost 81 cents to settle at $72.14 on Friday.
