* U.S. adds 204,000 jobs in Oct, sharply above forecast
* China's Oct factory output, CPI rise
* Dollar gains against euro and yen
* Indonesian rupiah, Thai baht, Indian rupee fall
* Tokyo's Nikkei jumps 1.3 pct
By Dominic Lau
TOKYO, Nov 11 Asian shares fell to a four-week
low on Monday as a surprise surge in U.S. jobs growth heightened
worries the Federal Reserve will start reducing stimulus as soon
as next month -- boosting the dollar against the euro, yen and
MSCI's broadest index of Asia-Pacific shares outside Japan
shed 0.5 percent, hitting its lowest since Oct.
11 and extending Friday's 1 percent drop.
Jakarta shares fell 0.8 percent, Thai stocks
lost 1.5 percent and the Manila bourse dropped 1.7
"Stronger than expected U.S. labour market report will
increase fears of portfolio capital outflow from emerging
markets, and will weigh on current account deficit currencies in
particular," Credit Agricole CIB said in a client note.
Emerging Asian currencies came under pressure, with the
Indonesian rupiah down 1 percent to 11,551 per dollar,
hitting a one-month low, and Thai baht off 0.9 percent
to 31.66 to a seven-week trough.
The Indian rupee was down 1.3 percent at 63.281 per dollar
while the Philippine peso eased 0.5 percent to
43.38 against the greenback, a one-month low.
Major European indexes were
expected to open flat to modestly higher.
U.S. employers took on 204,000 new employees last month,
almost twice the number forecast by analysts and defying
expectations that the partial U.S. government shutdown would
hamper job growth.
The strong data raised the prospect the Federal Reserve may
soon decide to start winding down its $85 billion-a-month
Fed Chairman Ben Bernanke and two other top policymakers
suggested continued support for the U.S. central bank's massive
stimulus campaign, however.
A hedge fund manager said it was unlikely that the Fed will
start reducing stimulus by year-end.
"If people get concerned about rates in the U.S. moving
higher and QE ending sooner, obviously that will have an impact.
But I don't think it's going to happen anytime soon," he said.
"I just think they wouldn't do anything before the end of
the year because of the impact on sentiment and consumption. I
think it's too early to talk about it."
The Chinese CSI300 Index rose 0.4 percent in a
choppy session after touching a 2-1/2 month low, with investors
awaiting the end of a four-day closed-door policy meeting of the
Chinese Communist Party on Tuesday that will set the economic
agenda for the next decade.
China's annual inflation climbed to an eight-month high in
October, fuelling market worries about policy tightening as
factory output and investment data pointed to signs of
stabilisation in the world's second-largest economy.
DOLLAR UP, NIKKEI ADVANCES
The dollar was steady at 99.005 yen, not far from a
seven-week high of 99.41 yen reached last Thursday, and up 0.1
percent at $1.33585 to the euro, having gained 0.4
percent on Friday.
Against a basket of major currencies, the dollar
stood at 81.258, within striking distance to a two-month high of
81.482 touched on Friday.
As the yen weakened, Japan's Nikkei benchmark
climbed 1.3 percent in relatively light trade after losing 0.8
percent last week.
U.S. S&P E-mini futures were little changed in Asian
trade after the Standard & Poor's 500 index advanced 1.3
percent on Friday.
U.S. Treasury futures added 2 ticks after the 10-year
U.S. Treasury yield rose as much as 15 basis points
to a four-week high of 2.763 percent on Friday.
Gold slipped 0.3 percent to about $1,284.5 an ounce,
adding to Friday's 1.5 percent decline and languishing near a
three-week low on worries that the Fed will soon remove its
support for the economy.
Brent crude prices rose 0.3 percent to around $105.4
a barrel, building on Friday's 1.6 percent rise, which broke a
three-day run of losses and rebounded from a four-month trough.