* MSCI Asia ex-Japan inches lower, Nikkei flat at open
* China official manufacturing PMI due at 0100 GMT
By Chikako Mogi
TOKYO, Nov 1 (Reuters) – Asian shares fell on Thursday as
investors waited for China’s official manufacturing PMI for
insight into whether growth in the world’s second largest
economy was bottoming out.
The MSCI index of Asia-Pacific shares outside Japan
eased 0.3 percent after ending October with a
0.5 percent gain, in contrast to September’s 5.6 percent rise.
Australian shares fell 0.7 percent as miners and
banks retreated ahead of the Chinese data, while South Korean
shares opened down 0.4 percent.
The final reading of China’s HSBC manufacturing PMI for
smaller firms will also be reported.
“Last month, both (Chinese PMI) reports showed a rebound
from the previous result and could be the start of a new trend
if it continues to improve,” said Neal Gilbert, currency
strategist at GFT Forex in New Jersey, in a note.
“Any negative result could send the AUD/USD down to test and
perhaps break support around 1.0350,” he said. China is
Australia’s largest export destination and its data affects the
Australian dollar, which stood steady around $1.0369.
China’s official manufacturing PMI due at 0100 GMT will
likely show a rebound to 50.3 in October from 49.8 in September
to suggest factory output picking up again after two months of
slowing growth.
Japan’s Nikkei average opened flat.
European stocks dipped after a mixed batch of corporate
earnings, and U.S. stocks were nearly flat in the wake of
massive storm Sandy, that caused the market’s first
weather-related two-day closure since the late 19th century.
“New York shares were softer towards the closing, which
doesn’t leave a good impression. The market may take a
wait-and-see stance as the U.S. job data is just around the
corner,” said
Yutaka Miura, senior technical analyst at Mizuho Securities.
The dollar firmed 0.1 percent against the yen to 79.84
.
An uncertainty over bailouts for Greece and Spain, the
pending “fiscal cliff” of tax increases and U.S. government
spending cuts, and an outcome of a tight U.S. presidential race
before the Nov. 6 elections have kept markets directionless.
Investors instead focused on third-quarter corporate
earnings and outlook amid a lacklustre global economy.
A gauge of Australian manufacturing activity released on
Thursday showed the sector contracted in October for an eight
month, with the exports sub-index sliding to the lowest level in
over a year.
Later on Thursday, investors will also eye the U.S. ISM
index of national manufacturing conditions, seen holding above
50 for a second straight month in October.
After that, the next key event is the October U.S. payrolls
number due on Friday, which is expected to have expanded by
125,000, with the unemployment rate ticking up to 7.9 percent
from September’s 7.8 percent.
The euro was pinned to the recent $1.28-$1.32 range, trading
steady at $1.2962.
Euro zone finance ministers held a teleconference on
Wednesday without any breakthrough on Greece, which said on
Wednesday that it will overshoot its deficit and debt targets
again next year because of a deeper than forecast recession.
Eurogroup chairman Jean-Claude Juncker said he expected a
deal at the finance ministers’ face-to-face meeting on Nov. 12
provided Greece had completed a list of prior actions.
Brent and U.S. benchmark crude posted losses for October for
the second consecutive monthly declines, undermined by slowing
global growth and expectations of more North Sea supply.
U.S. crude inched down 0.1 percent at $86.06 a barrel
and Brent fell 0.2 percent to $108.45.
