Asia shares edge up, Greece uncertainty lingers

SYDNEY - Most Asian share markets were fractionally higher on Monday following a record close on Wall Street, with investors cautiously optimistic the European Union would make progress this week on a debt deal with Greece.

Oil prices extended their bounce as Brent topped $62 a barrel, while the major currencies stayed locked in recent tight ranges.

Data from Japan showed the economy emerged from recession in the final quarter of last year, though growth of 0.6 percent was short of market forecasts.

Investors still seemed encouraged and the Nikkei firmed 0.6 percent in early trade.

MSCI's broadest index of Asia-Pacific shares outside Japan recouped a small initial loss to inch ahead.

The index boasted its highest close since late October on Friday but is bumping up against a major band of chart resistance in the 484 to 486 area.

Australia's main index eased 0.2 percent, while South Korean shares rose by a matching amount.

Holidays will be a feature this week with the United States off on Monday and much of Asia celebrating the Lunar New Year. China's markets are off from Feb. 18 right through to the 24th.

The Eurogroup of finance ministers meets in Brussels later Monday to try to find common ground with Greece' new government, in talks that could drag on for some time.

Greece said on Sunday it was confident of reaching agreement in negotiations with its euro zone partners, but reiterated it would not accept harsh austerity strings in any debt pact.

Markets have generally assumed a compromise would eventually be found, given the alternative might be a disastrous Greek exit from the euro.

The S&P 500 ended at a record high on Friday, as energy shares gained with oil prices, while the Nasdaq hit a 15-year high helped by technology stocks.

The Dow gained 0.26 percent, while the S&P 500 added 0.41 percent and the Nasdaq 0.75 percent. The FTSEuroFirst index of 300 leading shares closed up 0.64 percent, helped by upbeat growth data from Germany.

Without a clear outcome on Greece, there is little conviction to buy or sell the euro. As a result, the common currency has been drifting in a slim $1.1262-1.1534 range in the last few weeks. It was last flat at $1.1400.

Against the yen, the euro was a touch softer at 135.00, off a three-week peak of 136.70 reached last Thursday. The dollar slipped to 118.59 yen, recoiling from a one-month high of 120.48 set last Wednesday.

The main mover on Monday was sterling, which scaled a six-week peak following recent hawkish-sounding comments from the Bank of England. The pound climbed as far as $1.5435 in early trade, from around $1.5407 late on Friday.

In commodities, oil was supported by signs that deeper industry spending cuts may curb excess supply. Brent crude rose 42 cents to $61.94 per barrel, while U.S. crude added 34 cents to $53.12 per barrel.

source: interaksyon.com

PH stock market ekes out modest gain after US fails to break budget impasse

MANILA - Philippine share prices squeezed out marginal gains on Tuesday as the US government partially shut down after Congress failed to reach a deal to fund federal operations. At the Philippine Stock Exchange, the benchmark index inched up 6.04 points, or 0.1 percent, to close at 6,197.84, tracking the modest advance of most Asian markets. Among the sub-indices, only the service and property counters finished in the green with gains of 0.45 percent and 0.35 percent, respectively. Market breadth was negative as decliners beat advancers, 84 to 57, while 41 issues were unchanged. A total of 1.53 billion stocks worth P7.88 billion changed hands. Actively traded stocks were Meralco, Alliance Global, Metrobank, Universal Robina and Ayala Land. Top gainers were Ginebra, Maybank and PAL, while the biggest losers were Keppel Properties, Keppel Holdings and Philex Petroleum. The US government began a partial shutdown for the first time in 17 years after US lawmakers missed the October 1 deadline to agree on the budget for the new fiscal year. The Republican-controlled House of Representatives was pushing for the delay of President Barack Obama's signature healthcare law by a year, while the Senate Democrats refused to do so. "Markets held on to the morning gains for a while, taking time to digest the latest development. Yet as the afternoon session progressed it became evident investors found the sidelines a more enticing place to ride out the uncertainty as to how long the shutdown will last," said Jun Calaycay of Accord Capital Equities Corp. The PSE index fell nearly three percent on Monday as investors braced for a US government shutdown amid a budget impasse. The main gauge jumped to a high of 0.96 percent in early Tuesday trades but succumbed to profit-taking in the afternoon session.

source: interaksyon.com

Indian stocks lead Asian markets higher, rupee up

SYDNEY - Asian stocks rose to three-week highs on Thursday as Indian shares and the rupee rallied a day after the country's new central bank chief unveiled measures to support the currency and the banking sector.

But worries the U.S. Federal Reserve will soon scale back stimulus kept markets in check. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.6 percent, having earlier hit a high last seen on August 19.

Financial spreadbetters expect modest opening gains for key European markets, mirroring Asia's performance. 


India's benchmark BSE index put on 2.1 percent, South Korea's KOSPI rose 1.0 percent, while Thai stocks climbed 1.6 percent.

Tokyo's Nikkei closed a touch firmer, having lost a bit of steam after hitting a one-month high. Still, it is up an enviable 5 percent so far this week.

The moves followed a second day of gains on Wall Street spurred by another set of upbeat U.S. data, though the figures have also added to the chance of the Fed tapering its stimulus program.

"Strong car sales in the U.S. again lifted market confidence in the economy, and lifted expectations that the U.S. Federal Reserve will start cutting back its stimulus this month," said Isao Kubo, an equity strategist at Nissay Asset Management. "There is a sense of caution in the market."

Markets appeared to have cast aside worries about Syria for the moment, even as a possible U.S. military strike moved one step closer after a Senate committee voted in favor of action, clearing the way for a vote in the full Senate, likely next week.

Central bank focus

Former IMF chief economist Raghuram Rajan took the helm at the Reserve Bank of India in grand style on Wednesday, announcing an array of measures to liberalize financial markets and the banking sector.

The rupee rose to as high as 65.53 per U.S. dollar, pulling well away from a record low around 68.85 set last week.

Radhika Rao, an economist at DBS in Singapore, said the path of action plotted by the new governor was a welcome move.

"Still, the external drivers of the rupee weakness will continue to dictate the momentum, along with the urgent need to address domestic structural pitfalls - fiscal and current account deficits, along with reviving investment activity," she said in an email to clients.

As expected, the Bank of Japan maintained the massive monetary stimulus launched in April and revised up its outlook for the economy following a two-day review. Governor Haruhiko Kuroda will give a media briefing later in the day.

The European Central Bank takes centre stage next, although it is widely seen keeping rates low for an "extended period".

U.S. data on Wednesday showed auto sales raced past expectations in August, ahead of the closely-watched payrolls data on Friday, extending a string of upbeat U.S. data that has reinforced expectations the Fed will soon start to pull back support.

Such expectations have underpinned the U.S. dollar, which remained near a six-week high against a basket of major currencies.

The euro briefly popped above $1.3200, before slipping back 0.3 percent to $1.3173. It remained within spitting distance of a six-week low of $1.3138 plumbed earlier this week.

Against the yen, the dollar reached a one-month high of 99.99, while the euro retreated slightly from a two-week peak around 131.81 yen reached overnight.

Among commodities, Brent crude oil added 12 cents to $115.05 a barrel, while copper futures were flat at $7,126.00 a metric ton.

India, along with many emerging markets, has also been hit hard by an outflow of funds as international investors positioned for a world with less central bank support.

The IMF, in a note prepared for the Group of 20 meeting in St. Petersburg, warned that emerging countries were particularly vulnerable to a tightening of U.S. monetary policy.

It urged strengthened global action to revitalize growth and better manage risks, adding some downside risks have become more prominent.

source: interaksyon.com

Asian shares fall, eyes on German ruling, Fed meeting

TOKYO - Asian shares fell on Tuesday as investors repositioned before a German Constitutional Court ruling on the euro zone's bailout funds which could remove one risk for Europe, and a U.S. Federal Reserve meeting that may yield widely expected stimulus measures.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 percent, dragged lower by Chinese markets, with Shanghai shares slumping 1 percent while investors took profits from recent rallies to push Hong Kong equities down 0.6 percent.

Japan's Nikkei average slipped 0.8 percent, weighed by declines in cyclical stocks which are generally linked to the health of the economy.

"Investors are cautious ahead of major events later this week," said Lee Young-won, an analyst at HMC Investment & Securities, referring to Germany's constitutional court verdict on Wednesday which would pave the way for activating the European Central Bank's scheme and the Fed's two-day policy meeting ending on Thursday.

Global shares had slipped and the euro fell at the end of last week as investors took profits from last week's rally after the European Central Bank outlined its bond-buying scheme designed to cap the rise in the borrowing cost of highly indebted euro zone states.

Spain, which has already received aid of up to 100 billion euros ($127.86 billion) from the euro zone to help it shore up its ailing banks, has said it could seek a sovereign rescue once euro zone partners and the ECB provide details on conditions attached and will likely hold discussions at the September 14-15 meetings of euro zone and EU finance ministers.

Europe continues to muddle through its crisis management, with Greece admitting it was having trouble convincing its foreign lenders to accept an austerity plan which is essential to revive the aid payments Athens needs to avoid bankruptcy.

Following Friday's disappointing U.S. jobs data, markets now believe the Fed will opt for some form of further monetary easing this week to help underpin the fragile U.S. recovery.

But views remain mixed over the specifics. Some see a powerful move such as a third round of bond buying known as quantitative easing, while others expect alternative options such as extending its commitment to keep interest rates near zero beyond the current period through late 2014 into 2015.

Reflecting growing investor jitters, the CBOE Volatility index .VIX, which measures expected volatility in the Standard & Poor's 500 index over the next 30 days, closed up 13.21 percent on Monday for its largest daily increase in seven weeks.

The euro rose 0.3 percent to $1.2790, nearing Friday's four-month peak of $1.2815.

"As long as there are expectations of quantitative easing by the Fed, the euro is likely to have some support," said a senior trader at a European brokerage.

While equities underwent an adjustment, policy hopes supported Asian credit markets, tightening the spread on the iTraxx Asia ex-Japan investment-grade index by 2 basis points.

Tight grains threatening

With the euro zone debt crisis severely undermining economic activities in Europe and dealing a blow to the world's growth engine China, which counts Europe as its key export market, the ripple effect is spreading to the rest of Asia.

South Korea announced an incremental stimulus package on Monday to nurse its export-driven economy through prolonged hard times, a move many Asian governments are expected to follow as Europe slides towards recession and the United States struggles to grow.

There were some bright spots amid general wariness. Big Japanese manufacturers' turned optimistic for the first time in four quarters in July-September. And Australian business conditions improved in August as most firms enjoyed a rebound in sales and profits.

But soaring prices of grains pose a big threat to the vulnerable global economy.

Australia, the world's No.2 wheat exporter, cut its forecast for wheat production in the 2012/13 crop marketing year and warned that yields could fall further.

Global grains prices have been bolstered by tight supplies as the worst drought in at least half a century hit U.S. farmland while Russia, the No. 4 wheat supplier, could limit exports.

"The tight supply is driving grains prices higher and they will remain elevated until demand subsides, when the number of cattle dwindles on scarce feed," said Masayo Kondo, president of research firm Commodity Intelligence in Tokyo.

"It will take about a half year for this cycle to complete and grains prices to start falling. Until then, inflationary pressures will mount and undermine global economies," he said.

Global monetary easing in itself does not necessarily put additional upward pressure on grains prices, but it will boost prices of precious metals, nonferrous metals and oil where speculative money typically flows, Kondo said.

U.S. crude eased 0.2 percent to $96.34 a barrel while Brent inched down 0.1 percent to $114.69 a barrel.

Spot gold added 0.3 percent at $1,730.54 an ounce, below a six-month high of $1,741.30 touched on Friday.

source: interaksyon.com

Asian markets higher despite eurozone uncertainty

HONG KONG - Asian shares edged higher in quiet trade Tuesday, shrugging off eurozone debt worries even after Germany and the European Central Bank dampened hopes for action to drive down borrowing costs.

Tokyo's Nikkei index added to the previous day's gains, rising 0.13 percent as the dollar held on to recent gains against the yen amid a continued shift away from the safe haven Japanese currency.

Hong Kong was flat, Sydney climbed 0.67 percent, Shanghai was up 0.55 percent, and Seoul gained 0.47 percent.

German news weekly Der Spiegel reported Sunday that the ECB was considering buying bonds issued by heavily-indebted eurozone countries in a move that would ensure borrowing costs did not rise beyond a pre-determined level.

But an ECB spokesman brushed aside the report as "absolutely misleading", while another at the German finance ministry said such an action would be "be very problematic."

Germany's central bank, the Bundesbank, said such bond purchases "should be viewed critically and entail, not least, substantial stability policy risks".

Borrowing costs for Spain and Italy have shot up towards levels that forced Greece, Portugal and Ireland to seek a bailout.

European markets had advanced in early trading on the Der Spiegel report but turned down after ECB and German officials dismissed the story.

US stocks closed flat in quiet trade that still had enough might to push Apple to become the world's most valuable company of all time with a total market value of $623.52 billion.

That surpassed the previous record of $619 billion set by software titan Microsoft in 1999, during the dot-com boom years.

The Dow Jones Industrial Average slipped 3.56 points to close at 13,271.64.

The S&P 500-stock index lost a bare 0.03 points at 1,418.13, while the tech-rich Nasdaq edged down 0.38 points to 3,076.21.

In oil markets, New York's main contract, West Texas Intermediate light sweet crude for September delivery, fell eight cents to $95.89 a barrel while Brent North Sea crude for delivery in October gained 19 cents to $113.89.

Gold was at $1,621.69 at 0310 GMT, compared to $1,615.20 on Monday.

In other markets:

-- Jakarta, Kuala Lumpur, and Manila were closed for public holidays.

source: interaksyon.com

Asian markets gain after Wall Street lead

HONG KONG - Asian markets rose Wednesday thanks to a positive lead from Wall Street, but gains were capped by lingering doubts about an upcoming European Union summit aimed at tackling the eurozone debt crisis.

Tokyo closed up 0.77 percent, or 66.50 points, at 8,730.49, while Sydney closed 0.75 percent, or 29.9 points, up at 4,043.2 and Hong Kong added 1.08 percent in the afternoon.

Seoul ended flat, edging down 0.16 points to close at 1,817.65, while in late trade Shanghai was also little changed.

US markets were given a boost by the S&P Case-Shiller price index for 20 major US cities, which rose for the third straight month in April.

The modest rise in the US market, caused by property prices falling less than expected, provided a fillip as the sector is a key component in the world's biggest economy.

However, separately the Conference Board reported that consumers grew more pessimistic about the economy for the fourth consecutive month in June.

The Dow gained 0.26 percent, the S&P 500 rose 0.48 percent and the Nasdaq added 0.63 percent.

Eyes are on Europe, with leaders meeting in Brussels for two days of talks from Thursday to consider proposals to give EU authorities more power over national budgets, and to centralise banking supervision.

But economists are unconvinced they will be able to overcome their differences to hammer out a coherent deal.

Some of the region's top finance chiefs met in Paris Tuesday to try to pave the way for a summit deal.

French Finance Minister Pierre Moscovici said the gathering would be anything but "banal" and would tackle real issues, while Italian Prime Minister Mario Monti vowed to work overtime to save the euro.

"We cannot allow this extraordinary European piece of work to which Italy has always contributed to go bust," Monti said in a speech to the Italian parliament.

A report drawn up by EU and eurozone leaders Herman Van Rompuy, Jose Manuel Barroso, Jean-Claude Juncker and Mario Draghi proposes to move "over the next decade" towards greater centralised power for the "financial sector, for budgetary matters and for economic policy."

In the report, EU president Van Rompuy said: "The euro-area level would be in a position to require changes to (national) budgetary envelopes if they are in violation of fiscal rules."

The meeting comes against a backdrop of a downgrade for 28 Spanish lenders by Moody's and an appeal by Madrid for rescue cash to prop up its banking sector.

This week also saw Cyprus become the latest eurozone member to ask for a handout as its economy struggles owing to its exposure to Greece's debt mountain.

In Sydney shares in Rupert Murdoch's News Corporation soared 2.42 percent to end at Aus$21.50 after confirming it is considering a split into two publicly traded companies, separating its publishing assets from its bigger entertainment arm.

The euro bought $1.2490 and 99.36 yen in afternoon Asian trade, compared with $1.2495 and 99.36 yen in New York late Tuesday. The dollar was trading 79.54 yen against 79.51 yen.

On oil markets New York's main contract, light sweet crude for August delivery was 18 cents lower at $79.18 a barrel and Brent North Sea crude for August delivery dropped 23 cents to $92.75 79.

Gold was at $1,569.10 an ounce at 0630 GMT, compared with $1,584.76 late Tuesday.

In other markets, Wellington added 0.19 percent, or 6.46 points to 3,387.78. Telecom Corp. was up 3.74 percent to NZ$2.44 and Fletcher Building slipped 1.53 percent to NZ$5.79.

Taipei rose 0.63 percent, 45.08 points, to 7,183.01. Taiwan Semiconductor Manufacturing Co ended up 0.76 percent higher at Tw$79.3 while smartphone maker HTC gained 2.31 percent at Tw$376.0.

source: interaksyon.com

Asian markets rise ahead of European summit

HONG KONG—Asian markets rose Tuesday following a strong performance on Wall Street and on hopes EU leaders will come to an agreement on dealing with the eurozone debt crisis at an upcoming summit.

Tokyo gained 1.10 percent, or 95.40 points, to end at 8,729.29, Seoul rose 1.64 percent, or 29.56 points, to 1,828.69 and Sydney climbed 1.16 percent, or 47.4 points, to 4.121.0.

In the afternoon Hong Kong climbed 1.29 percent and Shanghai rose 0.81 percent.

Attention is now on an informal meeting in Brussels on Wednesday where the crippling debt crisis that threatens the eurozone project will be top of the agenda.

"People are feeling a little more optimistic because European leaders look as though they might put some strong growth policies in place rather than just austerity," Stan Shamu, market strategist at IG Markets in Australia, told Dow Jones Newswires.

Ahead of the talks dealers were given a boost by Germany and France who said Monday they would do whatever it takes to keep Greece in the euro amid political turmoil in the country.

"We agreed that we have to do everything to keep Greece in the euro club," said German Finance Minister Wolfgang Schaeuble after the first official meeting with his new French counterpart Pierre Moscovici.

Schaeuble hosted Moscovici to thrash out a common line for the summit, after Germany was seen as being more isolated over its drive for austerity as the answer to the ongoing debt crisis.

Greece has returned as the key issue in Europe after polls on May 6 saw 70 percent of the electorate vote against pro-austerity parties but with no overall winner.

Many now fear a new vote on June 17 will see a victory for parties who campaigned against a bailout plan, which would in turn lead Athens to default on its debt obligations and leave the euro.

There are also concerns about the state of Spain's banks, which are staggering under huge bad loans after a 2008 property crash. Economy Minister Luis de Guindos forecast the Spanish economy would contract this quarter at the 0.3 percent rate it has for the past half year.

On currency markets the euro eased from a small rally in New York that was fuelled by hopes for the EU meeting.

It bought $1.2793 and ¥101.60 in early Asian trade Tuesday, compared with $1.2815 and ¥101.62 in New York late Monday. But the single currency was up from the $1.2779 in Asia Monday and the four-month low of $1.2642 seen Friday.

The dollar was at ¥79.43 Tuesday against ¥79.30.

On Wall Street Monday the main indexes posted strong gains. The tech-rich Nasdaq was the best performer, up 2.46 percent as a strong showing from two of its biggest firms Apple and Google outweighed an 11 percent slump in market debutant Facebook.

The Dow finished up 1.09 percent and the S&P 500 climbed 1.60 percent.

Oil prices were up in afternoon Asian trade, with New York's main contract, light sweet crude for delivery in June, 14 cents higher at $92.71 a barrel on its last trading day, and Brent North Sea crude for July gaining seven cents to $108.88.

Gold was worth $1,590.00 an ounce at 0600 GMT, compared with $1,596.40 late Monday.

In other markets:


Taipei rose 1.15 percent, or 82.66 points, to 7,274.89. Leading smartphone maker HTC surged 6.02 percent at Tw$431.5 while Hon Hai Precision added 4.81 percent at Tw$87.2.

Wellington gained 1.04 percent, or 36.47 points, to 3,529.86. Telecom was up 3.5 percent at NZ$2.64 and Fletcher Building added 1.8 percent to NZ$6.38 while Contact Energy added 0.41 percent to NZ$4.86.

—Agence France-Presse

source: gmanetwork.com

Italian Brands Tap Asian Markets

MANILA, Philippines — While Italy remains “a place of style and inspiration,” in an increasingly globalizing retail environment, its brands are now looking East for expansion. The Italian casualwear chain Liu Jo, for example, is setting up more stores in different Asian territories for further brand growth.

“A lot of big companies now realize that when you need to grow, you have to come to Asia because it’s booming,” says Marco Marchi, one of the brand’s founders. “We also believe that the Asian region is currently the tiger of the world economy.”

The brand has put up Liu Jo Asia Pacific Limited, a division that specializes in penetrating Asian markets. Liu Jo opened its first Philippine store in 2010, in Ayala Center Cebu.

Fernando Fornaciari, managing director for Liu Jo Asia Pacific Limited, agrees that Asia is a burgeoning continent, but it’s “not just because the opportunities [for growth]” are in Asia recently. “We also want to build something that can grow and be stable in the long run,” adds Fornaciari.

In catering to a foreign continent, it seems that Fornaciari and his team are still observing what kind of merchandise fits properly into the Asian region. Women’s wear and ladies’ accessories remain core retail factors, aspects that the brand prefers to keep its business focus on for the time being.

Marchi recognizes that men worldwide are spending again for fashion, but the subject of menswear in Asian countries like the Philippines is still subject for conscientious evaluation. “We know that there’s good potential [for men’s items in Asia] but we have to be 100 percent sure [of it] first. We want to anticipate things for the meantime so maybe [we’ll bring menswear here] next year,” says Fornaciari.

Marchi and Fornaciari consider investing in the Philippines, though, as a viable measure, as they are enthusiastic about the brand’s local development despite “a small presence of Italian brands” in the country.

While most foreign brands venture into the Philippines by building stores in Metro Manila first, Fornaciari says that the first Liu Jo shop in the Philippines opened in Ayala Center Cebu last 2010 instead in order to discern a more diverse set of shoppers, which consists of Filipinos along with tourists from different countries like Japan and Russia.

“Cebu is an important international city,” relates Fornaciari. “There are a lot of international tourists in Cebu, so [it was a good opportunity for us] to [observe] local customers and foreign consumers as well. Metro Manila has a lot of foreigners but they’re expats, so they’re mostly [in the country just] for business.”

“Cebu is known as a tourist destination. Many international customers are familiar with Liu Jo and this presence supports our international visibility,” adds Marchi. Reception has been positive, with accessories representing 40 percent of total sales in the Cebu boutique.

Marchi and Fornaciari, who recently visited Metro Manila and Cebu, reveal that the brand is now ready to expand into Metro Manila. Liu Jo recently opened its accessories boutique at The Podium mall in the Ortigas business district, while a Liu Jo store is set to be launched at the Glorietta shopping center in Makati City later this year.

Marchi and his brother Vannis established Liu Jo in 1995, in the knitwear district that is Carpi, Italy. The aim is to sell clothes that are “in tune with the latest trends” for “feminine and confident” women. As Marchi relates, the brand’s name came from the words “Liu” and “Jo,” nicknames that he and a former girlfriend gave each other years ago, “and today it stands for my desire to convey a natural taste for beautiful things. It has been our [brand's] good luck charm over the years.”

Eventually, Liu Jo’s product portfolio extended into junior and baby wear, beachwear, underwear, shoes, accessories, and menswear. Possibilities for worldwide awareness are created through opening stores abroad, airing video commercials with an international mileage, and even starring supermodel Kate Moss for its recent Spring-Summer 2012 campaign.

Forward-thinking Italian companies, as Marchi puts it, also address heightening global presence through an extensive distribution network. A Liu Jo press note reveals that the brand currently has “over 190 mono-brand points of sales and almost 4,500 multi-brand stores ensuring the presence of the brand in 35 countries in [three] continents (Europe, Africa, and Asia).”

source: mb.com.ph

Asian shares fall on sluggish US jobs

TOKYO—Asian shares fell on Monday as a sharp slowdown in US jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more US data and earnings as well as figures from China this week.

Friday's data showed US payrolls grew by 120,000 in March, far below the expected gain of 203,000 jobs for the smallest rise since October, keeping the door open for the Federal Reserve to provide more monetary support to the fragile economy.

Industrial commodities such as copper and oil fell on growth worries while the potential for more Fed easing helped gold rebound but pressured the dollar.

MSCI's broadest index of Asia Pacific shares outside Japan slipped as much as 0.8 percent to near a four-week low hit last week. US stock futures fell more than 1 percent on Friday after the jobs data.

Japan's Nikkei average closed down 1.5 percent, after sliding as much as 1.6 percent to a one-month low earlier, with a firmer yen also dampening sentiment.

"Price actions after the jobs data show that markets had been excessively pricing in the US economic recovery and must now fill the gap between the reality and prices built on perceived strength of the economy," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory Co.

"Markets will continue to focus on global data this week to gauge what price levels would match the real economy," he said.

Some Asian markets, including Australia and Hong Kong, and European markets remain closed on Monday.

China in focus

China's annual inflation rate hit 3.6 percent in March, with volatile food prices leading a temporary rebound that pushed costs above expectations but left intact the view that Beijing has the flexibility to ease monetary policy to support growth.

Producer prices eased 0.3 percent on the year, against a 0.2 percent fall forecast, sparking concerns that it indicated weakening demand.

"My concern is not about CPI, it's about PPI," said Ren Xianfang, an analyst at IHS Global Insight in Beijing. "Since the final quarter of last year, it has been falling towards deflationary territory and now it has been realized. This will affect our outlook about how fast the economy is recovering."

Data due this week from China, the world's second-largest economy after the United States, also include trade due on Tuesday and first-quarter gross domestic product due on Friday.

China's economy likely grew at its slowest pace in nearly three years between January and March at just 8.3 percent, still well above the government's full-year growth target of 7.5 percent and pointing to a soft landing of the economy.

Demand outlook softens

Shanghai copper fell as much as 0.9 percent earlier on Monday before paring some losses on hopes appetite from top copper consumer China will remain with further monetary easing.

Oil was weighed by demand growth concerns, as well as easing worries about supply disruptions. Brent crude slipped as much as $1.26 to $122.17 a barrel from Thursday's settlement after Iran agreed to resume talks with top world powers this week on the country's nuclear program, raising hopes of a peaceful end to the standoff that has rattled the oil market for months.

US oil shed as much as $1.44 from Thursday's settlement to $101.87 a barrel. Oil markets were closed on Friday due to Good Friday.

Spot gold rose 0.9 percent at $1,643 an ounce.

The dollar extended its loss against the yen on Monday to hit a one-month low of ¥81.19, but was up 0.2 percent against the euro at $1.3067.

The dollar may remain pressured as currency speculators trimmed their long positions in the latest week, while net shorts on the yen shrank slightly from the previous week. To be short a currency is to bet it will decline in value, while being long is a view its value will rise.

Barclays Capital analysts said it was too early to conclude US jobs growth has entered a falling trend as cyclical sectors such as manufacturing and leisure remained relatively strong.

For more clues, US markets will focus on the earnings season, with earnings likely rising 3.2 percent for the first quarter. But that figure dwindles to 1.8 percent on the year when excluding Apple Inc, the world's biggest company by market value. —Reuters

source: gmanetwork.com