Asian shares
extended gains on Tuesday, shrugging off downbeat economic data
overnight that had pressured Wall Street, focusing instead on a key
U.S. jobs report that could give valuable pointers to the timing of the
Federal Reserve's planned interest rate increase.
Crude
oil prices firmed after plunging overnight, with U.S. crude CLc1 adding
about 0.8 percent to $45.52 a barrel. Brent LCOc1 gained 0.3 percent to
$49.66 after skidding 5 percent to six-month lows.
But financial spreadbetters expected subdued openings in Europe, with Britain's FTSE 100 .FTSE seen opening down by 25-30 points, or 0.3 percent lower. Germany's DAX .GDAXI was seen opening down by 30-39 points, or 0.3 percent lower, while France's CAC 40 .FCHI was expected to open down by 20 points, or 0.4 percent lower.
"European equities are set to slip on the open," Jonathan Sudaria, dealer at Capital Spreads, said in a note. "Overnight markets were a mixed bag with the U.S. down and Asia up, but Europe has decided to take its cue from the U.S."
MSCI's
broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS turned
positive and extended gains late in the session as China shares rose,
while Japan's Nikkei stock index .N225 pared losses and ended down about 0.1 percent.
The Shanghai Composite Index .SSEC rose more than 3 percent and the CSI300 index .CSI300 added 2.8 percent.
Beijing has taken a raft of steps to support Chinese share markets after they lost more than 30 percent of their value since peaking in June, keeping investors cautious despite the gains.
"The market is still very volatile ... investors are likely to be quiet and see what the next step of the government will be," said Patrick Yiu, a director of CASH Asset Management in Hong Kong.
"The overall market momentum is not likely to pick up anytime soon and the economy in China is still very weak," added Yiu.
U.S. equities markets stumbled overnight, after manufacturing data from China and the U.S. both disappointed.
The Institute for Supply Management's index of national factory activity slipped to 52.7 in July, falling short of expectations that it would match last month's reading of 53.5.
But financial spreadbetters expected subdued openings in Europe, with Britain's FTSE 100 .FTSE seen opening down by 25-30 points, or 0.3 percent lower. Germany's DAX .GDAXI was seen opening down by 30-39 points, or 0.3 percent lower, while France's CAC 40 .FCHI was expected to open down by 20 points, or 0.4 percent lower.
"European equities are set to slip on the open," Jonathan Sudaria, dealer at Capital Spreads, said in a note. "Overnight markets were a mixed bag with the U.S. down and Asia up, but Europe has decided to take its cue from the U.S."
The Shanghai Composite Index .SSEC rose more than 3 percent and the CSI300 index .CSI300 added 2.8 percent.
Beijing has taken a raft of steps to support Chinese share markets after they lost more than 30 percent of their value since peaking in June, keeping investors cautious despite the gains.
"The market is still very volatile ... investors are likely to be quiet and see what the next step of the government will be," said Patrick Yiu, a director of CASH Asset Management in Hong Kong.
"The overall market momentum is not likely to pick up anytime soon and the economy in China is still very weak," added Yiu.
U.S. equities markets stumbled overnight, after manufacturing data from China and the U.S. both disappointed.
The Institute for Supply Management's index of national factory activity slipped to 52.7 in July, falling short of expectations that it would match last month's reading of 53.5.
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