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Asian shares slip on weak China PMI

Hong Kong - Asian markets dipped on Monday following losses on Wall Street and after a survey indicated manufacturing activity in China was contracting at a faster rate than initial results suggested.

Traders are also keeping a nervous eye on the crisis in Ukraine, where unrest has spread from the east to the south while Russia has warned the country's leaders to halt a military operation against pro-Kremlin rebels.

Hong Kong fell 0.77% and Shanghai eased 0.55% while Sydney lost 0.21%.

Tokyo, Seoul and Bangkok were closed for public holidays.

Banking giant HSBC said on Monday its purchasing managers' index (PMI) for China last month came in at 48.1, a tad up from the 48.0 in March but weaker than the 48.3 reported in its preliminary report on April 23.

A figure below 50 indicates contraction while anything above points to growth.

The news adds to fears for the world's number two economy and key driver of global growth following a slew of weak data recently, including on trade and investment.

Regional traders were given a negative lead from New York, where events in Eastern Europe overshadowed a better-than-expected jobs report.

Russia warned Ukraine of "catastrophic consequences" unless it ended a military operation against pro-Moscow secessionists in several towns in the east.

At the same time a new front looked to be opening up in the southern city of Odessa, where 38 people died in an arson attack against a trade union building on Friday.

President Barack Obama, speaking at the White House Friday after meeting with German Chancellor Angela Merkel, threatened "severe sanctions" if Russia did not alter course.

On Wall Street the Dow slipped 0.28%, the S&P 500 shed 0.13% and the Nasdaq dipped 0.09%.

US shares had started on a high after the Labour Department said the economy added 288 000 jobs in April, far above the 210 000 projected by analysts and the most in more than two years.

Coupled with upward revisions for the previous two months, the figures showed a firm rebound in hiring after a tepid winter pace that had spurred worries of a more fundamental downshift in activity.

On currency markets Monday the dollar bought ¥102.08 compared with ¥102.19 in New York on Friday.

The euro fetched $1.3863 against $1.3869, while it was also at ¥141.53 from ¥141.7.

Oil prices were mixed. US benchmark, West Texas Intermediate for June delivery, gained 13 cents to $99.89 in early Asian trading. Brent North Sea crude for June dipped 4c to $108.55.

Gold fetched $1 307.90 at 02:20 GMT compared with $1 285.81 on Friday.

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