US dollar, stocks hit as jobs disappoint

LONDON. The US dollar took a dive and gains in stocks evaporated after disappointing US jobs data, while Tokyo rose on stimulus hopes after Japan’s prime minister signalled his exit.

The United States gained only 235,000 jobs last month, according to government data released Friday, far below expectations and a possible harbinger that the Delta variant is harming the US economic recovery.

The payroll increase reported by the Labor Department in August was sharply lower than the upwardly revised 1.1 million positions added in July, as well as the analyst consensus of 750,000.

The figure is likely to encourage the US Federal Reserve to hold off from beginning to wind down its stimulus to support the economy at its September meeting.