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Asian shares sink after Wall St losses

Hong Kong - Asian markets fell on Thursday following a heavy sell-off on Wall Street as a mixed bag of data raised concerns about the global economy, while the dollar tumbled a day after breaking ¥110 for the first time in six years.

Traders are now awaiting a European Central Bank (ECB) policy meeting later in the day and the release of US jobs figures on Friday.

Tokyo tumbled 1.32% and Sydney was 0.49% lower while Seoul shed 0.80%.

Hong Kong, Shanghai and Mumbai were closed for public holidays. A pro-democracy campaign in Hong Kong is also being closely tracked.

Protest leaders have called for the leader of the financial hub to stand down by the end of the day or they will step up their demonstration, which has so far been largely peaceful.

US shares suffered heavy losses on Wednesday after the Commerce Department said construction spending in August fell unexpectedly, while a separate report showed manufacturing activity slowed in September.

The Dow tumbled 1.40%, the S&P 500 fell 1.32% and the Nasdaq lost 1.59%.

Investors were unmoved by figures showing US private-sector employment increased 213 000 last month.

The main focus of attention is Friday's non-farm payrolls report, which is used as a barometer of the health of the world's number one economy.

A strong result could be seen as giving the Federal Reserve more room to increase interest rates sooner than its mid-2015 forecast.

On currency markets the greenback also sank in New York, ending the day at ¥108.91, well down from the ¥110.09 it touched earlier in Tokyo, the first time it had breached ¥110 since August 2008.

In early trade on Thursday it was at ¥108.94.

The euro was also struggling ahead of the ECB meeting, which comes days after data showed inflation at its lowest level in five years, fuelling deflation fears and calls for fresh easing measures.

The euro bought $1.2623 and ¥137.59 against $1.2624 and ¥137.48 in US trade.

On oil markets US benchmark West Texas Intermediate for November delivery rose 24 cents to $90.97 while Brent crude for November gained 15c to $94.31.

Gold was at $1 215.88 an ounce against $1 213.29 late on Wednesday.
 

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