TEMPO.CO, Tokyo-Asian stocks dipped early on Monday following lacklustre Chinese data out over the weekend, while the dollar remained on the defensive against the yen after the Bank of Japan's decision to hold policy steady favoured the Japanese currency.
MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.1 percent, while Australian shares dipped 0.5 percent.
Activity in China's manufacturing sector unexpectedly contracted in October for a third straight month, an official survey showed on Sunday, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.
Markets have another chance to gauge the health of the Chinese economy when a private survey of manufacturing activity is published at 0145 GMT.
The dollar stood unchanged at 120.55 yen after losing 0.4 percent on Friday, when the BOJ wrong-footed investors who had wagered that the Japanese central bank would ease policy.
Focus now falls on U.S. data, including the all-important non-farm payrolls due on Friday, and how that could affect the Federal Reserve's stance on interest rates.
The Fed did not hike rates this month but caused a stir by leaving the door open for a hike in December.
"Incoming U.S. economic data bear significance for the December FOMC decision and could drive higher FX and rate volatility in the coming weeks," strategists at Barclays wrote.
"The October FOMC statement was somewhat more hawkish than our expectations, and with the assessment on global risk having been removed, we think there is a clear attempt by the FOMC to keep a December hike on the table."
The euro gained 0.2 percent to $1.1020, having risen against the greenback Friday on a soft U.S. core personal consumption expenditure (PCE) index release.
The Australian dollar was down 0.1 percent at $0.7130 in wake of Sunday's downbeat China data. The Aussie is often used as a proxy of China trades.
In commodities, crude oil prices slipped, unable to sustain gains made on Friday on the latest decline in the U.S oil rig count.
U.S. output may be declining but global supplies of crude and refined oil products continue to grow, weighing down on the market.
U.S. crude was down 0.8 percent at $46.22 a barrel.
REUTERS
