Asian shares edge lower Monday

Investor studies share prices during the afternoon trading at a private stock market gallery in Kuala Lumpur, Malaysia, Monday, Nov. 4, 2013. Asian markets edged lower in holiday-hit trade on Monday, reversing earlier gains that were fueled by upbeat US and Chinese manufacturing data as well as strong US auto sales. AP PHOTO/DANIEL CHAN

HONG KONG—Asian markets edged lower in holiday-hit trade on Monday, reversing earlier gains that were fueled by upbeat US and Chinese manufacturing data as well as strong US auto sales.

The euro made a small gain after suffering selling pressure last week on expectations the European Central Bank (ECB) will cut interest rates at its next meeting Thursday.

Sydney slipped 0.38 percent, or 20.6 points, to close at 5,390.5 and Seoul fell 0.70 percent, or 14.25 points to 2,025.17. Shanghai closed flat, dipping 0.07 points to 2,149.63 and Hong Kong gave up 0.26 percent, or 60.17 points, to 23,189.62.

Tokyo and Mumbai were closed for public holidays.

US shares finished on a high Friday after figures showed manufacturing activity grew faster than expected in October. That came hours after China said its own purchasing managers’ index (PMI) came in at its highest level for 18 months.

News that October auto sales from the three largest US manufacturers—Chrysler, Ford and General Motors—saw double-digit percentage gains supported Wall Street Friday. The Dow added 0.45 percent, the S&P 500 tacked on 0.29 percent and the Nasdaq was flat.

Over the weekend data showed signs of growth in China’s services sector, as the official non-manufacturing PMI recorded its strongest reading in 14 months.

In China, attention is turning to a Communist Party policy meeting due to start Saturday, with traders looking for possible economic reforms.

Also, Washington will release third-quarter gross domestic product advanced estimates on Thursday and official October non-farm payrolls figures Friday.

On currency markets the euro ticked up slightly after tumbling last week on expectations the ECB would cut interest rates, after figures showed inflation in the region at a four-year low.

The euro bought $1.3492, compared with $1.3482 in New York but well down from $1.3750 on Wednesday. It was at 133.09 yen against 133.10 yen in New York.

“The eurozone has seen poor results in recent months, and there are serious concerns that the inflation rate has gone too low,” Desmond Chua, market analyst at CMC Markets in Singapore, told AFP.

“Investors will be watching if the ECB president Mario Draghi will indicate further monetary easing in the eurozone, with a new long-term refinancing option a viable option,” he said.

The dollar was at 98.65 yen from 98.69 yen in New York. The greenback is being buoyed by speculation the Federal Reserve will begin winding down its stimulus program next month after it gave an upbeat assessment of the US economy last week.

In oil trade New York’s main contract West Texas Intermediate for December delivery rose 14 cents to $94.75 a barrel in afternoon trade. Brent North Sea crude for December climbed 44 cents to $106.35.

Gold dropped to $1,313.60 at 1000 GMT compared with $1,316.15 on Friday.

In other markets:

— Singapore closed up 0.09 percent, or 2.74 points, at 3,203.94.

Oversea-Chinese Banking Corporation rose 0.97 percent to Sg$10.46 while agribusiness company Wilmar International eased 1.45 percent to Sg$3.40.

— Bangkok lost 2.85 percent, or 40.68 points, to 1,388.40.

Coal producer Banpu fell 4.46 percent to 26.75, while Bangkok Bank lost 2.88 percent to 202 baht.

— Kuala Lumpur slipped 0.16 percent, or 2.94 points, to 1,807.47.

SapuraKencana Petroleum shed 1.9 percent to 4.09 ringgit, while YTL Corp. eased 1.8 percent to 1.61. Genting Malaysia led gainers to rise 2.3 percent to 4.47 ringgit.

— Jakarta slipped 0.21 percent, or 9.30 points, to 4,423.29.

State miner Aneka Tambang fell 1.29 percent to 1,530 rupiah, while telecommunications company Telekomunikasi Indonesia jumped 1.09 percent to 2,325 rupiah.

— Taipei fell 0.41 percent, or 34.04 points, to 8,354.14.

Taiwan Semiconductor Manufacturing Co. was 0.46 percent lower at Tw$109.0 while chip design house MediaTek was up by its 7 percent daily limit at Tw$432.5.

— Wellington was flat, edging down 3.16 points to 4,910.68.

Fletcher Building fell 2.34 percent to NZ$9.60, Air New Zealand was off 0.57 percent at NZ$3.52 and telecoms firm Chorus climbed 0.38 percent at NZ$2.63.

— Manila closed 0.64 percent lower, giving up 41.99 points to 6,543.39.

Philippine Long Distance Telephone Co. fell 1.60 percent to 2,824 pesos.—Danny McCord

Originally posted: 4:37 pm | Monday, November 4th, 2013