CNBC Daily Open: Markets don’t always reflect the state of the economy

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Mixed jobs report
The U.S. economy added 142,000 nonfarm jobs in August. That's fewer than the 161,000 expected by Dow Jones, but better than July's revised 89,000. Unemployment in August ticked down to 4.2% from 4.3% as the labor force grew 120,000 for the month.

Slumping stocks
U.S. markets fell Friday, with the Nasdaq Composite sliding 2.55% to end the week more than 10% off its record close. Asia-Pacific stocks continued the slide on Monday. Japan's Nikkei 225 dropped around 0.7% as data showed the country's second-quarter GDP rose 2.9% on an annualized basis, lower than the Reuters poll of 3.2%.

Stagnating prices in China
Prices in China rose just 0.6% year on year in August. A Reuters poll was expecting a 0.7% increase for the year. Meanwhile, China's producer price index dropped 1.8% year over year, more than expected. To combat deflationary pressures, China needs "proactive fiscal policy and accommodative monetary policy," said Yi Gang, former head of the PBOC.

Risk of carry trade unwinding
The Japanese yen is maintaining its strength against the U.S. dollar, and might edge even higher because of declining U.S. yields, Kathy Lien, managing director of forex strategy at BK Asset Management, told CNBC. That might cause the yen carry trade – in which investors borrow in yen to invest in higher-yielding assets – to unwind further.

[PRO] JPMorgan downgrades China stocks
Faced with deflationary pressures, a housing market crash that has yet to recover and sluggish consumer demand, China's economy