* China, Japan services activity in view
* Wall Street climbs on defensive share gains
* ADP (NASDAQ:ADP) falls short of expectations
* Dollar edges away from two-year lows
By Alwyn Scott
NEW YORK, Sept 2 (Reuters) - Asian equities were set to open higher on Thursday after stronger U.S. economic data and the prospect of additional U.S. stimulus prompted sharp, and broader, gains on Wall Street, while the dollar extended its upward move.
Investors in Asia await readings on services activity in China and Japan, which are expected to show continued expansion in China, and possibly a move out of contraction for Japan.
Australian S&P/ASX 200 futures YAPcm1 rose 0.69% in early trading.
{{178|Japan's NiNikkei 225 futures NKc1 added 0.04%.
Hong Kong's Hang Seng index futures .HSI HSIc1 lost 0.15%.
E-mini futures for the S&P 500 EScv1 fell 0.10%.
The positive sentiment will be helped by the U.S. shift toward lagging sectors.
"Equity bulls will love the fact that the (U.S.) market was up quite strongly" on Wednesday, rather than selling off on higher real bond yields and a stronger dollar, said Chris Weston, Head of Research at the Pepperstone Group.
"People just used that to reweight toward value areas of the market," he said. "Value effectively took over."
On Wall Street, the three major equity indexes moved higher, but gains were led by defensive sectors such as utilities .SPLRCU as the high-flying tech sector .SPLRCT paused.
New data on Wednesday showed U.S. private employers hired fewer workers than expected for a second straight month in August, suggesting that the labor market recovery was slowing as the coronavirus pandemic persists and as government money to support workers and employers dries up. job growth also emerged in the Federal Reserve's Beige Book, which showed furloughed workers increasingly being laid off permanently in some parts of the United States. separate report showed factory orders rose more than expected in July, pointing to continued improvement in the manufacturing sector. mixed data may have added to expectations for Washington to reach a deal on new stimulus to counteract the pandemic.
The Dow Jones Industrial Average .DJI rose 454.84 points, or 1.59%, to 29,100.5, the S&P 500 .SPX gained 54.19 points, or 1.54%, to 3,580.84 and the Nasdaq Composite .IXIC added 116.78 points, or 0.98%, to 12,056.44. The climb marked the biggest daily percentage gain for the S&P since July 6.
The dollar strengthened against a basket of major currencies for a second straight day from lows of more than two years, while the euro pulled back from the key $1.20 level reached in the prior session. dollar index =USD rose 0.454%, with the euro EUR= down 0.02% to $1.1851.
The Japanese yen weakened 0.03% versus the greenback at 106.22 per dollar, while Sterling GBP= was last trading at $1.335, down 0.01% on the day.
Benchmark 10-year notes US10YT=RR last traded to yield 0.6477%.
In commodities, oil retreated as weekly government data showed U.S. gasoline demand fell in the latest week, an indication that economic recovery from the pandemic may be slower than expected. crude CLc1 settled down 2.92% at $41.51 per barrel and Brent LCOc1 was at $44.43, down 2.52% on the day.
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http://tmsnrt.rs/2ihRugV MSCI All Country Wolrd Index Market Cap
http://tmsnrt.rs/2EmTD6j Global currencies vs. dollar
http://tmsnrt.rs/2egbfVh Rouble tumbles
https://tmsnrt.rs/31Rndf5
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