Pre non-farm nervousness in Asian stocks

Most of the indices edge lower as markets await the key data

Asian stocks mostly eased today as mixed cues from the overnight US markets and a continued bout of strength in the US dollar exerted selling pressure on the risky assets ahead of weekends. The traders also eyed the US non-farm payrolls data due later on in the day and the day turned out to be a typical one ahead of the critical data. Markets were given a weaker lead from Wall Street Friday as the Dow edged up just 0.06 % after a mixed bag of reports showing a weekly drop in initial unemployment claims and a disappointing report on private-sector job creation. The nonfarm data would give a much clearer idea of the state of recovery in the world's biggest economy.

The Australian stocks closed lower on mixed movement in commodities and bearish cues from the Asian markets. Banks and financials also slid lower and the benchmark S&P/ASX200 index slipped 0.81 % to 4,449.4, while the broader All Ordinaries index eased 0.75 % to 4,472.4. Banks tumbled across the board with ANZ Banking Group slipping 0.48 % to $22.64, Commonwealth Bank of Australia sliding 0.92 % to $51.47 and Westpac Banking Corporation shedding 1.38 % to $22.76.

The Japanese stocks closed the trading session in negative territory with minor losses, as traders preferred to lock in gains following smart gains in the previous session and move to sidelines awaiting key economic data related to jobs in the U.S later in the day. The benchmark Nikkei 225 Index dropped 13.00 points, or 0.13%, to 9,901, while the broader Topix index of all First Section issues was down 0.48 point, or 0.05%, to 890. The biggest news of the day was that the ruling Democratic Party of Japan chose a leader who could then be confirmed as the country's new prime minister. Finance Minister Naoto Kan looked certain to succeed Yukio Hatoyama -- who resigned on Wednesday over the bungled handling of a US base dispute -- after winning his party's leadership.

In Shanghai, stocks gave up 0.96 %, with heavyweight banks leading the fall amid pressures over the imminent launch of Agricultural Bank's massive initial public offering, dealers said. Many fear the issue could dilute the market with stocks, putting pressure on prices.

In Mumbai, the key benchmark indices pared gains in late trade after hitting 3-week highs. The market breadth was negative. The BSE 30-share Sensex was provisionally up 90.86 points or 0.53%, up close to 190 points from the day's low and off close to 40 points from the day's high. Gains in European shares, higher US index futures and intraday recovery in Asian markets, aided a strong intraday rebound on the domestic bourses. IT, auto and realty stocks reversed initial losses. Banking and FMCG stocks also gained. As per provisional figures, the BSE 30-share Sensex was up 90.86 points or 0.53% to 17,113.90. The Sensex rose 128.09 points at the day's high of 17,150.42 in late trade, its highest level since 14 May 2010. The Sensex fell 58.41 points at the day's low of 16,963.92 in mid-morning trade.

The S&P CNX Nifty was up 21.85 points or 0.43% to 5,132.35 as per provisional figures. It hit a high of 5,147.90 in late trade, its highest level since it's highest since 14 May 2010.

The US dollar appreciated to a fresh four year high today, nearing 1.2100 mark and kept the pressure on the risky assets. The US non-farm payrolls would likely show an increase of 500000, up from 290,000 in April, as the economy mounts a slow recovery from recession.

Oil was under profit selling mode, sliding to a low of $74.12 and currently trades at $74.21, down 40 cents from the previous close. Gold corrected finally today as the expiry of the near month contract took sheen off the metal. The August futures on COMEX quote at $1201 per ounce, down more than 8 dollars after breaking under $1200 mark for a brief period.