Asian markets started the week on a sluggish note on Monday as investors chose discretion over valor ahead of central bank meetings in Europe and the always-critical U.S. payrolls report.
Trading was thinned by holidays in both Japan and Singapore which kept MSCI's broadest index of Asia-Pacific shares outside Japan just a fraction firmer at 480.04.
Australia's share market edged up 0.2 percent as another domestic bank reported record profits.
Major currencies were likewise quiet with the dollar still well supported in the wake of upbeat U.S. manufacturing data that stirred speculation the Federal Reserve might scale back its bond-buying in December, rather than in March as many in the market currently anticipate.
There are no less than four Fed officials speaking on Monday, starting with Fed Bank of Dallas President Richard Fisher in Sydney. Fed Governor Jerome Powell and the heads of the St. Louis and Boston Feds all appear later in the day.
The dollar index was holding firm at 80.715.DXY having climbed to a six-week peak on Friday. It was also up on the yen at 98.73 and threatening a major chart target at 99.00.
The dollar fared best against the euro which was undermined by speculation the European Central Bank (ECB) would have to ease again given disappointing news on unemployment and a startlingly low reading of inflation.
The single currency was pinned at $1.3489 on Monday, well below its recent high of $1.3832. The ECB holds a policy meeting on Thursday and it will be under intense pressure to stimulate the economy.
"We expect the opening statement, and Q&A, to have a distinctly dovish tone," wrote analysts at RBC Capital Markets in a note to clients.
"For now, we think that the Governing Council will refrain from any immediate action, but we expect the downbeat tone of next week's meeting to lay the groundwork for a policy response over the next few months."
Source: Reuters
