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Asia shares mixed ahead of US jobs data

Hong Kong - Asian shares were mixed on Thursday as investors brushed off another record close on Wall Street ahead of a European Central Bank policy meeting and the release of closely watched US jobs data.

The euro faced further selling pressure on expectations the ECB will further cut interest rates at its Thursday meeting and unveil other monetary easing measures to fend off deflation and support the economy.

Tokyo pared most morning gains to end flat, edging up 11.41 points to 15 079.37, while Seoul fell 0.65% to 1 995.48 and Sydney slid 0.15% to close at 5 436.90.

Shanghai gained 0.79% to 2 040.88 and Hong Kong slipped 0.18% to 23 109.66.

US shares ticked up on Wednesday after broadly upbeat data. The Institute for Supply Management said activity in the services sector, accounting for 80% of the US economy, surged in May.

Also, the Federal Reserve's "Beige Book" report said all 12 districts of the country saw increasing economic activity in recent weeks. That compares with April's report, which showed two districts' activity decline.

However, payrolls company ADP said the US private sector created a net 179 000 new jobs in May, its lowest level in four months.

The S&P 500 rose 0.18% to end at another record high, while the Dow edged up 0.07% and the tech-rich Nasdaq gained 0.41%.

ECB policy meeting in focus

On currency markets the euro edged lower prior to the ECB policy meeting which is widely expected to see it cut rates to historic lows. The bank is under pressure to tackle anaemic price rises and the threat of deflation.

Official data on Tuesday showed eurozone inflation slowed to 0.5% in May, from 0.7% in April and far weaker than the ECB's target of just below 2.0%.

There is speculation that it could introduce a number of unconventional measures, such as lowering the deposit rate to negative levels and begin asset purchases similar to those carried out by the Fed.

The euro bought $1.3598 against $1.3599 in New York, while it slipped to ¥139.55 from ¥139.68.

The dollar was quoted at ¥102.54 compared with ¥102.74.

Oil prices dipped. US benchmark, West Texas Intermediate for delivery in July, eased 35 cents to $102.29 a barrel while Brent North Sea crude for July was down 28c at $108.12 in afternoon trade.

Gold fetched $1 246.16 an ounce at 13:25 compared with $1 245.55 late on Monday.

In other markets:

- Singapore edged down 0.53 points to 3 279.64.

Oversea-Chinese Banking Corporation eased 0.21% to Sg$9.73 while DBS bank gained 0.17% to reach Sg$17.02.

- Kuala Lumpur gained 3.80 points, or 0.20% to 1 869.00.

AirAsia X added 0.7% to 0.72 ringgit, while Malayan Banking rose 0.2% to 9.87. SapuraKencana Petroleum lost 0.5% to 4.05 ringgit.

- Bangkok added 0.26% or 3.76 points to 1 453.16.

Bank of Ayudhya soared 7.55% to 42.75 baht, while supermarket operator Big C Supercenter gained 5.21% to 202.00 baht.

- Jakarta ended up 0.06% at 4 935.56.

Coal miner Bukit Asam advanced 2.24% to 11 400 rupiah, while state lender Bank Negara Indonesia slipped 0.61% to 4 870 rupiah.

- Taipei rose 0.23% to 9 140.72.

Acer rose 6.8% to Tw$20.95 while Taiwan Semiconductor Manufacturing Co fell 0.4% to Tw$123.0.

- Wellington ended flat, edging up 0.14 points to 5 159.49.

Trade Me added 0.86% to NZ$3.51 and Air New Zealand was down 0.45% at NZ$2.215.

- Manila was also flat, nudging up 5.87 points to close at 6 772.44.

Ayala Corp eased 0.08% to 639.50 pesos while Philippine Long Distance Telephone Co was unchanged at 2 890 pesos.

- Mumbai rose 0.86% to 25 019.51.

Havells India climbed 11.11% to 1 181.10 rupees while oil-refiner Bharat Petroleum Corporation rose 6.95% to 616.85 rupees.

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