Asia shares mostly slip after weak US lead

HONG KONG: Asian markets were mostly lower Friday following losses on Wall Street fuelled by anaemic US consumer spending, while the dollar and euro extended losses against the yen.

Investors were taking a breather ahead of the release next week of key economic data, including on global manufacturing activity, US jobs and Japanese business confidence.

In early trade Tokyo slipped 0.22 percent, Seoul was 0.19 percent lower, Shanghai eased 0.30 percent and Hong Kong and Sydney were flat.

In New York the three main indexes ended lower after the government released figures showing consumer spending, which accounts for more than two-thirds of US economic activity, rose just 0.2 percent in May after a flat April.

The figures came a day after news that the economy shrank a lot more than first thought in January-March, leading to worries that a recovery is still fragile.

The Dow eased 0.13 percent, the S&P 500 dipped 0.12 percent, having both touched record highs at the end of last week. The Nasdaq was flat.On currency markets the dollar, which sank in New York after the weak spending data, fell further in Tokyo.

The greenback bought 101.57 yen compared with 101.70 yen in New York and 101.79 yen in Tokyo earlier Thursday.

The euro also dropped, buying 138.31 yen, down from 138.42 in US trade and well off the 138.78 yen Thursday in Asia. The single currency was also at $1.3610 against $1.3609.

Oil prices -- which have been sitting at nine-month highs because of the Iraq crisis -- edged lower owing to concerns about demand in the United States, the world´s biggest oil consumer.

US benchmark West Texas Intermediate was down 13 cents at $105.71, while Brent crude eased seven cents to $113.14.Gold fetched $1,316.20 an ounce at 0200 GMT compared with $1,312.60 late Wednesday. (AFP)