Asian shares slip as focus moves to US data

HONG KONG: Asian markets slipped in early trade on Thursday as investors await the release of US data on jobs and economic growth, while the euro held up ahead of a closely watched European Central Bank meeting.

Tokyo eased 0.50 percent by the break and Sydney was 0.41 percent off while Seoul was flat.

Hong Kong shed 0.58 percent and Shanghai slipped 0.18 percent, with dealers also cautious before a Chinese Communist Party gathering at the weekend that is expected to outline its economic policy for the next five years.

With most corporate reporting out of the way, attention is now on the release Thursday of US third-quarter gross domestic product figures and on Friday of non-farm payrolls data for October.

The results will give traders a handle on the Federal Reserve's plan for its stimulus programme. The general consensus is that a strong set of numbers will push the bank into winding down the scheme sooner rather than later.

With a recent set of statistics indicating the economy was not severely affected by last month's government shutdown, there is a feeling the Fed will start to taper either in December or early next year.

Speculation that bank policymakers will soon begin to cut down on their $85 billion-a-month bond-buying scheme has provided support to the dollar.

In early Tokyo trade it was sitting at 98.63 yen, compared with 98.69 yen in New York Wednesday. It has gained about a yen over the past week.

The euro was also a little more buoyant than earlier in the week after Germany released data showing factory orders rising 3.3 percent in September.

There is speculation that the European Central Bank, meeting Thursday, will cut its interest rates in response to eurozone inflation hitting a four-year low in October, which raised fears the bloc could slip into deflation.

The euro was quoted at $1.3515 and 133.32 yen in Tokyo, against $1.3517 and 133.40 yen in New York.

The single currency had fallen to as low as $1.3450 Monday after hitting a two-year high of $1.3831 last week before the inflation figures.

In New York, the Dow provided a positive lead, jumping 0.82 percent to a record high 15,746.88, while the S&P 500 rose 0.43 percent but the Nasdaq fell 0.20 percent.

On oil markets, New York's main contract, West Texas Intermediate for December delivery, was up 12 cents to $94.92 dollars in morning Asian trade, while Brent North Sea crude for December fell 17 cents to $105.07.

Gold was at $1,316.60 per ounce at 0210 GMT compared with $1,317.35 on Wednesday. (AFP)