BANGKOK – World stock markets were mostly lower Friday ahead of a U.S. jobs report that is a key gauge of how robust the world’s No. 1 economy is.

Benchmark oil was nearly unchanged at $96 per barrel while the dollar fell against the euro but rose against the yen.

Major benchmarks slipped early in Europe. Britain’s FTSE 100 shed 0.1 percent to 5,789.78 while Germany’s DAX fell 0.1 percent to 6,647.85. France’s CAC-40 lost 0.2 percent at 3,368.86. Wall Street also headed for a lower opening, with Dow Jones industrial futures losing 0.1 percent to 12,650 and S&P 500 futures down 0.2 percent to 1,320.60.

The losses followed a slump among some major Asian benchmarks earlier in the day. Japan’s Nikkei 225 index fell 0.5 percent to close at 8,831.93. South Korea’s Kospi dropped 0.6 percent to 1,972.34. Australia’s S&P/ASX 200 lost 0.4 percent at 4,251.20. Hong Kong’s Hang Seng was marginally higher at 20,756.98. Benchmarks in Indonesia, New Zealand and the Philippines fell, while Singapore and Taiwan rose.

Mainland Chinese shares extended gains fueled by news of fresh support for the farming and small-business sectors, with the benchmark Shanghai Composite Index rising 0.8 percent to 2,330.41 while the Shenzhen Composite Index added 1.5 percent to 878.29. “The gains mainly stem from recent supportive policies, which will help drive the rally in the short-term, though the room for further gains is limited,” said Zhang Jiuhui, an analyst at Great Wall Securities, based in Beijing.

Poly Real Estate, China’s second-largest listed property developer, climbed 1.1 percent, while industry leader China Vanke gained 1.4 percent. China Life Insurance, China’s biggest insurance company, gained 1.2 percent and Bank of Communications rose 1.8 percent.

Later Friday, the U.S. government releases its report on January job creation and the unemployment rate. In December, the country added 200,000 jobs, and the jobless rate was 8.5 percent.

Some analysts said they are not expecting a strong increase in jobs, based on a report Wednesday from private payroll agency ADP. The report said private-sector employment rose by 170,000 in January from the previous month — fewer jobs than expected.

“The two series continue to track fairly closely and both show what everyone has rightfully fretted about for the past 18 months: there hasn’t been any trend improvement in job growth since mid-2010,” said analysts at DBS Bank Ltd. in Singapore.

Traders were largely refraining from big moves ahead of the employment data in case it turns out to be worse than expected.

“For right now, for major indexes like Dow Jones, the Hang Seng and also Germany’s DAX, they are already at a relatively high level,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “For major indexes which shot up to high levels, we need more information for markets to expand the uptrend.”

The results of earnings reports, meanwhile, reverberated across markets. Japan’s Hitachi Ltd. jumped 7.5 percent after the electronics maker maintained its earlier earnings projection for the business year to March 31.

But Singapore Airlines fell 3.6 percent a day after announcing that quarterly profit plunged 53 percent as passenger demand slowed while higher fuel prices sent costs up. South Korean shipbuilder Hyundai Heavy Industries plummeted 7.7 percent after posting a 91 percent plunge in fourth-quarter net profit, Yonhap News agency said.

Elsewhere, Australian miner Lynas Corp. tumbled 10.1 percent amid opposition to its rare earths plant in Malaysia’s central Pahang state that is scheduled to begin operations later this year.

Stocks were largely unchanged on Wall Street on Thursday. The Dow Jones industrial average closed down less than 0.1 percent at 12,705.41. The broader Standard & Poor’s 500 index rose 0.1 percent to 1,325.54. The Nasdaq composite rose 0.4 percent to 2,859.68.

Benchmark oil for March delivery was up 18 cents to $96.54 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $1.25 to end at $96.36 per barrel in New York on Thursday.

In currency trading, the euro rose to $1.3148 from $1.3141 late Thursday in New York. The dollar rose to 76.18 yen from 76.16 yen.

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AP researcher Fu Ting contributed from Shanghai.

BANGKOK – Asian stock markets were mostly lower Friday ahead of a U.S. jobs report that is a key gauge of how robust the world’s No. 1 economy is.

Benchmark oil was nearly unchanged at $96 per barrel while the dollar rose against the euro and the yen.

Japan’s Nikkei 225 index fell 0.5 percent to 8,829.69. South Korea’s Kospi dropped 1 percent to 1,964.78 and Hong Kong’s Hang Seng lost 0.1 percent to 20,719.23.

Australia’s S&P/ASX 200 lost 0.4 percent at 4,249.40. Benchmarks in India, Thailand and New Zealand fell while Taiwan, Singapore and Indonesia rose.

Later Friday, the U.S. government releases its report on January job creation and the unemployment rate. In December, the country added 200,000 jobs, and the jobless rate was 8.5 percent.

Some analysts said they are not expecting a strong increase in jobs, based on a report Wednesday from private payroll agency ADP. The report said private-sector employment rose by 170,000 in January from the previous month — fewer jobs than expected.

“The two series continue to track fairly closely and both show what everyone has rightfully fretted about for the past 18 months: there hasn’t been any trend improvement in job growth since mid-2010,” said analysts at DBS Bank Ltd. in Singapore.

Traders were largely refraining from big moves ahead of the employment data in case it turns out to be worse than expected.

“For right now, for major indexes like Dow Jones, the Hang Seng and also Germany’s DAX, they are already at a relatively high level,” said Linus Yip, strategist at First Shanghai Securities in Hong Kong. “For major indexes which shot up to high levels, we need more information for markets to expand the uptrend.”

The results of earnings reports, meanwhile, reverberated across markets. Japan’s Hitachi Ltd. jumped 7.3 percent after the electronics maker maintained its earlier earnings projection for the business year to March 31.

But Singapore Airlines fell 2.5 percent a day after announcing that quarterly profit plunged 53 percent as passenger demand slowed while higher fuel prices sent costs up. South Korean shipbuilder Hyundai Heavy Industries plummeted 7.2 percent after posting a 91 percent plunge in fourth-quarter net profit, Yonhap News agency said.

Elsewhere, Australian miner Lynas Corp. tumbled 9.4 percent amid opposition to its rare earths plant in Malaysia’s central Pahang state that is scheduled to begin operations later this year.

Stocks were largely unchanged on Wall Street on Thursday. The Dow Jones industrial average closed down less than 0.1 percent at 12,705.41. The broader Standard & Poor’s 500 index rose 0.1 percent to 1,325.54. The Nasdaq composite rose 0.4 percent to 2,859.68.

Benchmark oil for March delivery was up 4 cents to $96.39 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $1.25 to end at $96.36 per barrel in New York on Thursday.

In currency trading, the euro fell to $1.3131 from $1.3141 late Thursday in New York. The dollar rose to 76.18 yen from 76.16 yen.

BANGKOK – Asian stock markets were mostly lower Friday ahead of a highly awaited U.S. jobs report that is considered a key gauge for determining how robust the world’s No. 1 economy is.

Japan’s Nikkei 225 index fell 0.3 percent to 8,854.26. South Korea’s Kospi dropped 0.4 percent to 1,976.35 and Hong Kong’s Hang Seng Index lost 0.2 percent to 20,707.30.

Australia’s S&P/ASX 200 lost 0.2 percent at 4,257.90. Benchmarks in Taiwan, Indonesia and the Philippines also fell. Singapore, Malaysia and New Zealand rose.

Later Friday, the U.S. government releases its report on January job creation and the unemployment rate. In December, the country added 200,000 jobs, and the rate was 8.5 percent.

Some analysts said they were not expecting to see strength, based on a report Wednesday from private payroll agency ADP. The report said private-sector employment rose by 170,000 in January from the previous month — fewer jobs than expected.

“The two series continue to track fairly closely and both show what everyone has rightfully fretted about for the past 18 months: there hasnt been any trend improvement in job growth since mid-2010,” said analysts at DBS Bank Ltd. in Singapore.

Stocks were largely unchanged on Wall Street on Thursday. The Dow Jones industrial average closed down less than 0.1 percent at 12,705.41. The broader Standard & Poor’s 500 index rose 0.1 percent to 1,325.54. The Nasdaq composite rose 0.4 percent to 2,859.68.

Benchmark oil for March delivery rose 8 cents to $96.44 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell by $1.25 to end at $96.36 per barrel in New York on Thursday.

In currency trading, the euro fell to $1.3129 from $1.3141 late Thursday in New York. The dollar was unchanged at 76.16 yen.

NEW YORK (Reuters) – Stock index futures pointed to slight gains at the open on Thursday after jobless claims fell more than expected, boosting optimism about the upcoming January payrolls report.

New claims for unemployment benefits dropped by 12,000 to a seasonally adjusted 367,000, versus the forecast of 375,000.

On Friday, the government will release the January non-farm payroll report, and economists forecast 150,000 jobs were added in January, a decline from the previous month, which benefited from holiday hiring.

A report on Wednesday showed private sector job creation slowed more than expected in January, raising some caution about the sector.

"People will expect a slightly better payroll report because of this, and with the market at these lofty levels, you need to have continued good news for the market to sustain its gains," said Uri Landesman, president of the New York-based Platinum Partners.

S&P 500 futures rose 1 point and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 7 points, and Nasdaq 100 futures put on 2 points.

A handful of U.S. retailers beat expectations for January same-store sales, but analysts are not so optimistic about department store chains and apparel chains. In premarket trading, Target Corp (TGT.N) rose 2.1 percent to $52.50 while Abercrombie & Fitch Co (ANF.N) slumped 11 percent to $41.52.

On Wednesday, equities rallied almost 1 percent on upbeat global manufacturing data and optimism Greece was closing in on a deal with private creditors.

Materials and other cyclical groups could gain on hopes that China, the world's largest consumer of metals, would further ease monetary policy to stimulate its economy.

Facebook could raise as much as $10 billion in the biggest-ever Internet initial public offering, according to a filing Wednesday. In 2011, Facebook said net income rose 65 percent to $1 billion on revenue of $3.71 billion.

Shares of JPMorgan Chase & Co (JPM.N) could draw attention after the bank group surprised Wall Street by winning a leading role in the IPO.

Drugmaker Merck & Co Inc (MRK.N) rose 1.2 percent to $39.10 in premarket trading after the Dow component reported fourth-quarter sales missed expectations and forecast flat full-year results.

Dow Chemical Co (DOW.N) posted weaker-than-expected profit and revenue, sending shares down 2.3 percent to $33.15 before the bell.

Green Mountain Coffee Roasters Inc (GMCR.O) surged 21.5 percent to $65.15 a day after its first-quarter earnings far exceeded expectations.

"Earnings have been decent relative to history, but compared with last year they're disappointing," said Rick Fier, vice president at Conifer Securities in New York, which has about $12 billion in assets under administration. "We're seeing a slowing in revenue growth."

In other economic data due Thursday, the Institute for Supply Management-New York releases the January index of regional business activity at 9:45 a.m. EST (1445 GMT) In December, the index read 534.0.

Investors will also scour testimony from U.S. Federal Reserve Chairman Ben Bernanke, who will speak on the state of the economy before the House Budget Committee at 10 a.m. EST (1500 GMT).

U.S. stocks extended January's rally on Wednesday, but some strategists see the benchmark S&P 500 approaching a short-term top after gaining 4.4 percent last month.

(Reporting by Ryan Vlastelica; editing by Jeffrey Benkoe)

BANGKOK – World stock markets fell Monday, with uncertainty about a tentative deal to resolve Greece’s debt crisis weighing on investor sentiment ahead of a summit of European leaders.

Benchmark oil slipped to near $99 per barrel while the dollar rose against the euro but fell against the yen.

Stock markets opened lower in Europe, where leaders gathering in Brussels for a summit on taming the continent’s financial crisis were met by a nationwide strike that hobbled trains and other public transportation.

Britain’s FTSE 100 fell 0.5 percent to 5,707.50 and Germany’s DAX lost 0.6 percent to 6,470.18. France’s CAC-40 shed 0.6 percent to 3,298.07. Wall Street was also headed for a lower open, with Dow Jones industrial futures falling 0.4 percent to 12,559 and S&P 500 futures down 0.5 percent to 1,305.50.

Losses began earlier in Asia, with the investment mood dampened by Friday’s release of data showing the U.S. economy grew more slowly than expected in the last three months of 2011. The economy grew at an annual rate of 2.8 percent in the October-December quarter, lower than the 3 percent that economists were expecting.

Japan’s Nikkei 225 index shed 0.5 percent to close at 8,793.05. South Korea’s Kospi was 1.2 percent lower at 1,940.55 and Hong Kong’s Hang Seng dropped 1.7 percent to 20,160.41. Australia’s S&P/ASX 200 lost 0.4 percent at 4,272.70.

Benchmarks in mainland China, Singapore, Indonesia, India and the Philippines also fell. Taiwan and New Zealand rose.

European leaders were to meet later Monday in Brussels to discuss austerity and belt-tightening measures as well as a tentative deal reached Saturday between Greece and its private investors that could avert a disastrous Greek default on its debt.

If the deal holds and works, it will help prevent a potential shock to the world banking system. But it doesn’t resolve the weakening economic conditions in Greece and other European nations as they rein in spending to get their debts under control.

Stan Shamu of IG Markets in Melbourne said that “the Greece debt issues will remain a source of uncertainty and might dampen the risk mood ahead of the EU summit today.”

Under the agreement, investors holding 206 billion euros ($272 billion) in Greek bonds would exchange them for bonds with half the face value. The replacement bonds would have a longer maturity and pay a lower interest rate.

The deal would reduce Greece’s annual interest expense from about 10 billion euros to about 4 billion euros. When the bonds mature, Greece would have to pay its bondholders only 103 billion euro.

Some analysts said stocks were taking a breather after post-New Year rallies in several markets that were spurred by signs of improvement in the U.S. economy and Europe’s debt crisis stabilizing. Hong Kong’s Hang Seng, for example, is up more than 11 percent since the beginning of the year. Australia’s S&P/ASX 200 is 5.7 percent higher.

“Probably it’s a case of the market getting a little bit tired. We’ve had quite a significant rally now, and that’s been based on some news that was mildly encouraging out of Europe,” said Ric Spooner, chief market analyst at CMC Markets in Sydney.

“But we may have arrived at a level where the market will need a bit further concrete evidence and news to continue the rally,” Spooner said.

Shares of CNK International, a South Korean mineral development company, plunged 14.9 percent after company executives were implicated in a stock manipulation scheme, Yonhap News agency said.

Japan’s Mitsubishi Electric Corp. plummeted 14.8 percent after the Defense Ministry and the Cabinet Satellite Intelligence Center said they would not sign contracts with the electric machinery manufacturer, which acknowledged it had overcharged on defense and space-related projects, Kyodo News agency reported.

Traders are awaiting more data this week for clues about which way the U.S. economy is headed. On Wednesday, the Institute for Supply Management will release its manufacturing index for January. The Labor Department will release monthly employment data Friday.

“Because the market has been expecting rather good economic data from the U.S. … I am afraid if those figures disappoint the market, it may trigger further correction in the stock market,” said Louis Wong, dealing director of Phillip Securities Ltd.

Benchmark oil for March delivery was down 49 cents to $99.07 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 14 cents to end at $99.56 per barrel on the Nymex on Friday.

In currencies, the euro fell to $1.3145 from $1.3208 late Friday in New York. The dollar fell to 76.67 yen from 76.72 yen.

BANGKOK – Asian stock markets fell Monday, with slower-than-expected growth in the U.S. and uncertainty about a tentative deal to resolve Greece’s debt crisis weighing on investor sentiment.

Japan’s Nikkei 225 index fell 0.7 percent to 8,781.92. South Korea’s Kospi was 0.7 percent lower at 1,951.23 and Hong Kong’s Hang Seng dropped 0.5 percent to 10,394.33. Australia’s S&P/ASX 200 lost 0.3 percent at 4,274.70.

Benchmarks in Singapore and the Philippines also fell. Shares in mainland China were mixed after being closed for a week for Chinese New Year holidays. Taiwan and New Zealand rose.

European leaders were to meet later Monday in Brussels to discuss austerity and belt-tightening measures as well as a tentative deal reached Saturday between Greece and its private investors that could avert a disastrous Greek default on its debt.

If the deal holds and works, it will help prevent a potential shock to the world banking system. But it doesn’t resolve the weakening economic conditions in Greece and other European nations as they rein in spending to get their debts under control.

Stan Shamu of IG Markets in Melbourne said that “the Greece debt issues will remain a source of uncertainty and might dampen the risk mood ahead of the EU summit today.”

Under the agreement, investors holding 206 billion euros ($272 billion) in Greek bonds would exchange them for bonds with half the face value. The replacement bonds would have a longer maturity and pay a lower interest rate.

The deal would reduce Greece’s annual interest expense from about 10 billion euros to about 4 billion euros. When the bonds mature, Greece would have to pay its bondholders only 103 billion euro.

It is unclear how investors who buy and sell the bonds of other debt-burdened countries, such as Italy, Spain and Portugal, will react. If they drive up borrowing costs for those countries, the debt crisis could get worse.

Private investors hold two-thirds of Greece’s debt, which is equal to an unsustainable 160 percent of its annual economic output. By restructuring the debt, Greece hopes to make it a more manageable 120 percent by decade’s end.

On Wall Street, stocks mostly fell Friday after the government said the U.S. economy grew more slowly than expected in the last three months of 2011.

Economic growth for October through December came in at an annual rate of 2.8 percent. That was the fastest of 2011 but lower than the 3 percent that economists were looking for.

The Dow Jones industrial average fell 0.6 percent to 12,660.46. The Standard & Poor’s 500 index fell 0.2 percent to 1,316.33. The Nasdaq composite rose 0.4 percent to 2,816.55.

Benchmark oil for March delivery was down 36 cents to $99.20 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 14 cents to end at $99.56 per barrel on the Nymex on Friday.

In currencies, the euro fell to $1.3180 from $1.3208 late Friday in New York. The dollar rose slightly to 76.74 yen from 76.72 yen.

NEW YORK – U.S. stock futures are mostly down with a report showing that the economy grew at a slower pace than economists had expected.

Dow Jones industrial futures are down 21 points to 12,6963. The broader S&P 500 futures are down 1 point at 1,314. The Nasdaq composite is up less than a point at 2,454.

The Commerce Department said Friday that the economy grew at a modest 2.8 percent in the final three months of last year. While that is the fastest growth in 2011, economists expected 3 percent growth.

Consumer products maker Procter & Gamble Co. cut its earnings outlook and Ford Motor Co. fell short of Wall Street expectations.

A recovery in the U.S. is vital for global growth at a time when Europe is facing another recession.

NEW YORK (Reuters) – Stock index futures fell on Tuesday as talks to resolve Greece's debt crisis stumbled again and analysts pointed to a short-term top in equity markets after the S&P 500 posted five days of back-to-back gains.

Euro zone finance ministers rejected an offer by private bondholders to help restructure Greece's debt, sending negotiators back to the drawing board and raising the threat of a messy Greek default.

The news from Greece overshadowed solid, but largely unspectacular corporate earnings reports. This week marks one of the busiest in the ongoing fourth-quarter earnings season.

"It seems like the weight of some of the European-related issues have finally triggered a bit of a setback for equity prices, at least on a premarket basis," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

Luschini said that the wording of a Greece default agreement would be key. He warned that any decision that prevented credit default swaps on Greece's debt from being triggered could unnerve the market.

After a dearth of bad news from Europe late last year and signs of an improving U.S. economy, the S&P 500 has run up gains of more than 22 percent from lows in October. Investors are now focused on U.S. earnings in a critical period this week and next.

S&P 500 futures fell 8.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were off 59 points, and Nasdaq 100 futures lost 11.5 points.

Earnings from some large U.S. corporations, including McDonald's Corp (MCD.N), DuPont (DD.N), and Johnson & Johnson (JNJ.N) failed to ignite much enthusiasm.

"They were on balance decent if not spectacular," said Luschini, adding that he was looking to large industrial companies such at 3M Corp (MMM.N) to give an insight into the economy.

DuPont reported higher-than-expected quarterly profit as strong agricultural sales helped offset a drop in volume in every other business unit. The shares were unchanged at $49.34 .

McDonald's Corp's quarterly profit beat analysts' estimates as sales at established restaurants rose more than 7 percent in the United States and Europe. The stock was up 0.5 percent to 101.42 in premarket trading.

Technical factors may be putting a cap on equities. "We continue to see evidence of a short-term peak developing," said Robert Sluymer, a technical analyst at RBC Capital Markets in New York. "Within the U.S. equity markets, leading groups are beginning to pause or pull back."

Sluymer saw banks as one sector that may pull back. A recent rally in the sector has encouraged investors after heavy losses last year. There was early evidence of weakness as Bank of America Corp (BAC.N) fell 1.8 percent to $7.12 in premarket trade.

The Federal Open Market Committee begins a two-day meeting on Tuesday.

The U.S. central bank will also begin a new practice of announcing policymakers' interest rate projections when the meeting ends on Wednesday in a move it hopes will bring greater public clarity to its decision-making. They are expected to start hiking interest rates again only in the first half of 2014, a Reuters poll showed.

(Reporting By Edward Krudy editing by Jeffrey Benkoe)

BANGKOK – Asian stock markets were mostly lower Thursday, amid inflation data in China that failed to meet expectations and fears of a possible recession in Europe.

Benchmark oil rose above $101 per barrel while the dollar fell against the euro and the yen.

Japan’s Nikkei 225 Index fell 0.7 percent to 8,386.30, while Hong Kong’s Hang Seng was nearly unchanged at 19,149. Australia’s S&P ASX 200 fell 0.2 percent to 4,181. Benchmarks in mainland China were mixed while Taiwan and Indonesia were lower.

South Korea’s Kospi added 0.6 percent to 1,856.10. Benchmarks in Singapore and Thailand also rose.

Data released Thursday showed China’s inflation eased slightly in December to 4.1 percent, from November’s 4.2 percent. But analysts had hoped to see more improvement.

“Chinese inflation is less than expectations, so the market is a little disappointed that it did not fall below 4 percent,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong. “I think we can say the worst of inflation is over for now, but what looms over the horizon may not be good.”

Politically sensitive food costs accelerated to 9.1 percent from November’s 8.8 percent, making it problematic for Beijing to take steps to stimulate slowing economic growth. The December rise in Chinese food costs was driven by a 21.3 percent jump in the price of pork, the country’s staple meat, and a 6.9 percent jump in grain prices.

Analysts blame the price surge on strong consumer demand and the flood of money from Beijing’s multibillion-dollar stimulus that helped China rebound quickly from the 2008 global economic crisis.

Meanwhile, growth problems in Europe continued to spook investors. Germany reported Wednesday that its economy shrank slightly at the end of last year. And the European Union revised its figures for economic growth in the third quarter to 0.1 percent, its slowest pace in more than two years.

A recession on the continent could slam many export-reliant Asian companies, which are already battered by weak global demand. In Japan, Toyota Motor Corp. fell down 1.4 percent and Nissan Motor Corp. lost 1.6 percent. Electronics giant Sharp Corp. dropped 2.7 percent. Panasonic Corp. shed 2.3 percent.

China’s export growth has fallen steadily since August, raising the threat of more bankruptcies and job losses among struggling exporters. Industry indicators show manufacturing and export orders contracted in November and December and growth in China’s imports of raw materials showed an unexpectedly sharp decline in December.

Shares of Indian outsourcing giant Infosys fell 6.8 percent, after the company said the global economic slowdown and chaos in Europe would hurt growth.

On Wall Street, the Dow Jones Industrial Average dropped 13.02 points, or 0.1 percent, to close at 12,449.45. The S&P 500 gained marginally to 1,292.48. The tech-heavy Nasdaq composite index rose 0.3 percent to 2,710.76.

In energy trading, benchmark crude for February deliver rose 44 cents to $101.31 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.37 to end at $100.87 per barrel on the Nymex on Tuesday.

The euro rose to $1.2719 from $1.2697 late Wednesday in New York. The dollar fell to 76.85 yen from 76.87 yen.

Stocks fell Thursday as renewed concern about Europe outweighed positive jobs news in the U.S. The euro fell to a 15-month low against the dollar and stocks fell sharply in Italy and Spain.

The Dow Jones industrial average fell 122 points, or 1 percent, to 12,297 in morning trading. The S&P 500 index fell 11 points to 1,266, and the Nasdaq fell 13 points to 2,635.

Stocks were down sharply in European countries with the biggest debt problems. Indexes in Italy, Greece and Spain fell more than 2 percent. Markets in the bigger, more stable economies of Britain, Germany and France fell slightly. The euro dropped to $1.28, its lowest level since September 2010.

Barnes & Noble plunged 25 percent after the book store chain lowered its profit forecast and said it might separate its electronic book and reader business from its bricks-and-mortar bookstores. The company’s Nook reader has been positioned as a competitor to Amazon Inc.’s hugely successful Kindle and Apple Inc.’s iPad.

In the U.S., the Labor Department reported another drop in the number of people seeking unemployment benefits. Payroll processor ADP said private employers added 325,000 jobs last month. The two reports signal further, though not dramatic, improvement in the U.S. jobs market.

Investors shrugged off the U.S. jobs news and looked abroad, worried about Europe’s banks. On Wednesday, Italy’s largest bank, Unicredit, said it was selling new stock at a steep discount to raise $9.7 billion to meet new requirements for banks to keep thicker financial cushions against losses. UniCredit fell 10 percent Thursday.

In U.S. corporate news:

• Constellation Brands Inc. fell 4.7 percent after the beverage maker said its third-quarter income dropped 25 percent on weaker wine and beer sales in North America. The company makes Robert Mondavi wine and Svedka vodka.

• Tesoro Corp. plunged 7 percent. The Texas oil refiner said it would report a loss for the final three months of 2011. Tesoro said rising prices for crude oil drove up refining costs at the same time gas prices were falling.

Earlier in Asia, Japan’s Nikkei 225 index fell 0.8 percent. Mainland China’s benchmark Shanghai Composite Index lost 1 percent to its lowest level in almost three years.