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Stocks tiptoe towards US manufacturing, tasks data

Bond yields wandered higher on Tuesday, while currencies and Asia's stock exchange steadied as financiers waited on a raft of data to figure out how deeply the U.S. can cut rates of interest.

Ten-year Treasury yields were somewhat greater at 3.919% and two-year yields increased a basis point to 3.935% as trade resumed in Asia following a U.S. vacation over night.

Positive costs figures on Friday led markets to cut the possibility of a half-point easing from the Federal Reserve. The U.S. ISM producing study due later in the day and particularly jobs information due on Friday will be crucial for the Fed's choice.

MSCI's broadest index of Asia-Pacific shares outside Japan ticked 0.1% lower. Japan's Nikkei increased 0.7% and S&P 500 futures were flat. The dollar has steadied together with U.S. yields as focus turns to Friday.

It really boils down to Friday's number, said Raisah Rasid, global market strategist at J.P. Morgan Property Management in Singapore, with policymakers searching for a cooling labour market to clear the way for rate cuts.

We do not see any tension or signs that would necessitate a 50 basis point cut ... the concern is how long will risk assets continue to rally?

Economic experts anticipate the ISM survey enhancing however staying in contractionary area at 47.5 in August.

I am not so sure the dollar will take too kindly to a. weaker read, stated Pepperstone analyst Chris Weston. A number. closer to 50 would likely force dollar shorts to cover.

On Friday analysts are trying to find an increase of 160,000 in jobs. and a dip in the joblessness rate to 4.2%.

The dollar was firm at 146.85 yen and traded at. $ 1.1063 per euro in the Asia session. Rallies in the. Australian and New Zealand dollars stopped briefly for. breath, with the Aussie held simply listed below $0.68.

In Hong Kong, shares in residential or commercial property company New World. Advancement dropped to a two-decade low after the. business estimated a $2.6 billion loss for the year to June.

In Australia, Woolworths shares fell 3% a day after. the supermarket operator said it would offer its staying stake. in a chain of alcohol shops.

Gold hovered at $2,494 an ounce after hitting a. record high above $2,500 in August.

Oil costs have struggled for traction as need worries. weigh against stress in the Middle East and Brent crude futures. slipped 0.5% to $77.13 a barrel.

(source: Reuters)