Asian markets mixed ahead of US election

HONG KONG: Asian markets were mixed on Monday as better-than-expected US jobs figures were offset by caution ahead of this week's US presidential election and the start of China's leadership transition.

The dollar remained elevated against the yen and euro after Friday's employment numbers, but that was unable to support Japan's Nikkei, which also saw profit-taking after last week's healthy gains.

Tokyo fell 0.23 percent, Hong Kong lost 0.20 percent, Shanghai was flat, Sydney was up 0.10 percent and Seoul was 0.29 percent lower.

Traders were given a bright lead after the US Labor Department said on Friday that the economy created 171,000 jobs in October, far more than the expected 125,000.

And while the jobless rate rose to 7.9 percent from 7.8 percent, that was blamed on more people entering the market.

The encouraging report provided a final snapshot of a slowly improving economy as President Barack Obama battles for re-election Tuesday in a tight race against Republican challenger Mitt Romney, the Wall Street favourite.

US stocks jumped in early trade but ended in the red by the end of trade Friday. The Dow finished down 1.05 percent, the S&P 500 fell 0.94 percent and the Nasdaq lost 1.26 percent.

The jobs data also lifted the dollar, sending it to a six-month high of 80.68 yen in New York, before easing to end Friday at 80.47 yen.

In early Asian trade the greenback bought 80.45 yen.