HONG KONG, July 8 — Asian markets fell today after a better-than-expected rise in US job creation fuelled concerns the Federal Reserve will soon start to reel in its huge stimulus programme.

The dollar edged down a tad after posting strong gains against the yen in New York on Friday following the non-farm payrolls figures, which add to a slew of data indicating the world's top economy is strengthening.

Tokyo fell 1.40 per cent, or 200.63 points, to 14,109.34 despite the weakening yen, while Seoul slipped 0.90 per cent, or 16.46 points, to 1,816.85 and Sydney gave up 0.67 per cent, or 32.3 points, to 4,809.5.

In the afternoon Hong Kong tumbled 1.93 per cent and Shanghai was 2.31 per cent lower.

The Labour Department said Friday the US economy added 195,000 jobs in June, well above the consensus estimate of 166,000 jobs.

While the announcement shows the US recovery is gaining traction, investors fear the Fed will now start cutting back its US$85 billion (RM273 billion) a month bond-buying that has been credited with fuelling a rally in global markets.

When the central bank unveiled the scheme in September to keep interest rates down it said it would keep it in place until the economy was able to support itself and when unemployment had fallen.

However, Wall Street welcomed the news. The Dow climbed 0.98 per cent, the S&P 500 rose 1.02 per cent and the Nasdaq added 1.04 per cent.

The likelihood that there will be fewer dollars pumped into the financial system, while interest rates could rise sent the greenback higher in New York, climbing to ¥101.14 on Friday, from ¥100.21 earlier in the day in Asian trade.

But in Tokyo today the dollar dipped slightly to ¥101.06.

The euro, which was already under pressure after the European Central Bank said it would keep rates at record lows for "as long as necessary" bought US$1.2821, compared with US$1.2832 late Friday. It was also at ¥129.56 from ¥129.78.

In Seoul Asiana Airlines fell 5.76 per cent after one of its planes crashed while landing in San Francisco at the weekend, killing two passengers and injuring 182 more.

Oil prices rose. New York's main contract, light sweet crude for delivery in August, gained eight cents to US$103.30 a barrel and Brent North Sea crude for August added 24 cents to US$107.96.

Gold was at US$1,220.30 per ounce at 0630 GMT (1330 Malaysian time), compared with US$1,239.70 late Friday.

In other markets:

— Taipei fell 1.44 per cent, or 115.48 points, to 7,886.34.

Taiwan Semiconductor Manufacturing Co. shed 3.67 per cent to TW$105.0 while smartphone maker HTC tumbled 7.0 per cent to TW$189.0.

— Wellington was flat, edging up 3.43 points to 4,493.30.

Chorus added 0.76 per cent to NZ$2.65 and Contact Energy rose 2.47 per cent to NZ$5.40 but Fletcher Building was off 2.2 per cent at NZ$8.43. — AFP