HONG KONG: Asian markets were mixed on Wednesday, while the dollar sank after weaker-than-expected US jobs data raised expectations the Federal Reserve will keep its stimulus programme in place.

The September report out of Washington showed the economy struggling to add jobs even before a two-week government shutdown this month that analysts say probably smothered hiring even more.

Tokyo tumbled 1.95 per cent, or 287.20 points, to 14,426.05 as exporters were hit by a stronger yen, while Sydney fell 0.32 per cent, or 17.0 points, to 5,356.1 and Seoul fell 0.99 per cent, or 20.37 points, to 2,035.75.

Shanghai gave up 1.25 per cent, or 27.54 points, to 2,183.11, while in the afternoon Hong Kong eased 0.62 per cent.

However, emerging markets were higher on hopes for a continuation of the Fed's easy money programme, which has been credited with funding an investment splurge in developing economies.

Jakarta was up 0.87 per cent, Manila rose 0.53 per cent and Kuala Lumpur added 0.67 per cent.

Bangkok was closed for a public holiday.

The Labour Department said on Tuesday that the world's number one economy added 148,000 jobs last month, well below forecasts for a gain of 180,000.

While the figures indicate a US recovery is still having trouble gaining traction, traders took it as a cue to buy as the Fed has said it will only reel in its $85 billion a month bond-buying scheme when the economy is strong enough.

“The limited job gain supports the view that the Federal Reserve will maintain its accommodative monetary policy stance into 2014,” said Nick Bennenbroek of Wells Fargo Securities.

On Wall Street, the Dow rose 0.49 per cent, the S&P 500 – already at a record high – tacked on 0.57 per cent and the Nasdaq climbed 0.24 per cent.

“Stocks held gains in the US, but as shares in Asia started falling, risk-averse trading spread,” said Akira Moroga, manager of forex products group at Aozora Bank.

Global markets – particularly in emerging economies – have been in turmoil since May when Fed boss Ben Bernanke indicated the stimulus, which provides cheap cash and fuelled an investment splurge, could be withdrawn soon.

However, recent weak numbers have forced the bank to put off any “tapering”, while investors say the Washington debt ceiling row and government shutdown has made any such move this year even more unlikely.

The likelihood of a cut in bond purchases in the near future had already been lowered after US President Barack Obama nominated fiscal dove Janet Yellen – a fan of the “quantitative easing” scheme – to take over Bernanke's position in the new year.

Expectations the Fed will continue to print vast sums of cash well into 2014 put further downward pressure on the dollar.

In Tokyo the euro bought $1.3763, down from $1.3780 late Tuesday in New York, where it peaked at $1.3792, its highest level since November 2011. The single currency also sat at 134.05 yen compared with 135.23 yen.

The dollar was changing hands at 97.40 yen, from 98.12 in New York late Tuesday.

In oil trade, New York's main contract, West Texas Intermediate for delivery in December, shed 54 cents to $97.76, while Brent North Sea crude for December shed 30 cents to $109.67.

Gold rose to $1,335.93 at 0700 GMT compared with $1,310.44 on Tuesday – with the weaker greenback making the dollar-priced precious metal more attractive.

In other markets:

• Taipei fell 0.29 per cent, or 24.65 points, to 8,393.62. Smartphone maker HTC fell 2.51 per cent to Tw$136.0 while Taiwan Semiconductor Manufacturing Co. was 0.45 per cent lower at Tw$111.0.

• Wellington rose 0.92 per cent, or 44.61 points, to 4,876.40. Telecom added 3.52 per cent to NZ$2.36, Fletcher Building edged up 0.21 per cent to NZ$9.66 and Contact Energy was steady at NZ$5.20.