The Shanghai composite index opened more than 4 percent lower, but turned positive by midday and eventually ended the day down just 0.2 percent.
The Dow rose 293.03 points, or 1.8 percent, to 16,351.38. Energy stocks, in particular, fell hard, helping fuel a broad-based selloff on Wall Street that has all 10 sectors of the S&P 500 deep in the red.
“The biggest issues facing the USA are outside of its control, and the excessive references to China in the Beige Book suggests that the Fed will be cautious of increasing interest rates, and this is coaxing out the buyers”, said IG (LSE: IGG.L – news) ‘s market analyst David Madden.
“Investors should expect more volatility to come in this market”, said Mark Luschini, chief investment strategist for Janney Montgomery Scott. The Labor Department reported on Friday that total non-farm payroll employment added 173,000 in August, well below market consensus of 223,000.
A private survey showed that USA businesses added jobs at a steady pace last month, with construction and manufacturing showing solid gains. It’s the last major piece of economic data likely to impact whether the Fed raises interest rates later this month. The industry group climbed 2.1 percent as the price of oil jumped for a second day. European shares plunged on Friday, with Germany’s benchmark DAX index on the Frankfurt Stock Exchange diving 2.71 percent, as the uncertainty of a rate hike by the United States central bank weighed on market.
Europe closed modestly higher.
Crude oil was down $3.15 to $46.11 per barrel.
USA stocks rose on Thursday on the back of an upbeat session in Asia.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.18 percent. It recovered slightly Friday to trade 0.3% firmer against the dollar. This brings the total for the trailing month up to over 10%, compared to American markets which have only contracted by 7% in the trailing month.
Computer chip giant Intel (NASDAQ:INTL) up 2.1% at 28.41 was wanted after it introduced the 6th Generation Intel Core processor family based on a design dubbed Skylake after the market closed yesterday.