Most Asian stock markets fell Friday, dragged down by more evidence the US recovery

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is sputtering ahead of monthly figures on employment.

The mood in the region was cautious after new unemployment benefit claims in the US rose to their highest level in four months. Investors are now awaiting a broader US jobs report due later Friday that will give a key reading on the health of the world's biggest economy.

The Labor Department is expected to say private employers hired 90,000 workers in July, a slight increase from the 83,000 hired in June. But because of government layoffs tied to cutting temporary census jobs, the unemployment rate is expected to rise to 9.6 per cent from 9.5 per cent.

Japan's benchmark Nikkei 225 stock index lost 29.82 points, or 0.3 per cent, to 9,624.10 and Hong Kong's Hang Seng was off 52.53 points, or 0.2 per cent, at 21,499.56.

South Korea's Kospi declined 0.3 per cent to 1,778.30 and Australia's S&P/ASX 200 shed 0.4 per cent to 4,547.00. The Shanghai Composite Index fell 0.5 per cent to 2,607.14.

Markets in Taiwan, New Zealand and Southeast Asian nations also fell.

The US government said Thursday that first-time claims for unemployment benefits last week jumped to their highest level in four months in a grim reminder of how weak the US job market remains. Analysts had expected a small fall in jobless claims.

The Dow fell 5.45, or 0.1 per cent, to 10,674.98. The Standard & Poor's 500 index fell 1.43, or 0.1 per cent, to 1,125.81, while the Nasdaq composite index fell 10.51, or 0.5 per cent, to 2,293.06.

In currencies, the dollar rose to 85.99 yen from 85.87 yen in New York late Thursday. The euro rose to $1.3187 from $1.3181.

Benchmark crude for September delivery was up 3 cents at $82.04 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 46 cents to settle at $82.01 on Thursday.