Asian stocks continued to head south early Thursday on the back of a confluence of factors, which includes a weaker finish on Wall Street overnight, growth worries in Australia and jitters over tighter margin trading rules in China.
Overnight, U.S. markets were spooked by higher bond yields and as investors weighed the ADP Employment Report which showed 169,000 jobs created in April, missing expectations for a rise of 200,000.
While the ADP report focuses on the U.S. private sector, it is usually seen as a pre-cursor to the all-important nonfarm payrolls data released by the Bureau of Labor Statistics on Friday. A Reuters poll expects the U.S. to add 208,000 jobs in April, after posting its worst report since December 2013 in March with the creation of 126,000 jobs.
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