Asian stock markets pulled back slightly on Wednesday after a mixed batch of Chinese data showed growth in the world's second-biggest economy was still in low gear.
China's October industrial production growth cooled to 5.6 percent last month from a year ago, slightly lower than the 5.8 percent gain seen by economists in a Reuters poll. Retail sales jumped 11 percent from a year ago, just ahead of expectations of a 10.9 percent increase.
Chinese shares extended losses, with the CSI300 index .CSI300 of the largest listed companies in Shanghai and Shenzhen falling 1.3 percent, while the Shanghai Composite Index .SSEC eased 0.9 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gave up earlier gains to trade little changed. Taiwan .TWII shares recorded a 1.4 percent decline.
Japan's Nikkei .N225 and South Korean .KS11 shares were little changed.
A Reuters survey showed confidence among Japanese manufacturers fell in November for a third straight month to levels unseen in about 2-1/2 years, evidence that concerns about Chinese demand linger.
European markets look set for a rosier open, with financial spreadbetters expecting Britain's FTSE 100 .FTSE and France's CAC 40 .FCHI to start the day up 0.4 percent and Germany's DAX .GDAXI to climb 0.3 percent on the open.
Wall Street had offered no direction as the Dow .DJI ended Tuesday with a slight gain of 0.16 percent. The S&P 500 .SPX added 0.15 percent and the Nasdaq .IXIC eased 0.24 percent.
Weighing on the Nasdaq, Apple shares (AAPL.O) fell 3 percent after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 percent.
In currency markets, the euro struggled as political uncertainty in Portugal provided an excuse to sell in a market already bracing for further monetary policy easing from the European Central Bank. [USD/]
The common currency last stood at $1.0759 EUR=, having hit a six-month trough of $1.0673 on Tuesday.
The dollar index .DXY eased back form a seven-month peak to slip 0.4 percent to 98.883. The dollar ran into a little profit-taking against the yen, nudging it down 0.3 percent to 122.86 JPY=, from an early 123.15.
Yields on sovereign bonds were generally lower as soft Chinese inflation continued to point to global deflationary pressures.
Benchmark 10-year Treasury yields US10YT=RR dipped a couple of basis points to 2.32 percent, but remain hostage to the chance of a Fed rate hike next month. Indeed, concerns are growing that another strong payrolls report could lead to rates rising at a faster pace than was currently priced in.
The Treasury market is closed on Wednesday for Veterans Day, but Wall Street will be open.
In commodities, the firm U.S. dollar continues to weigh on prices with zinc at its lowest in over five years. [MET/L]
Oil prices resumed their decline on news U.S. crude stocks jumped last week. U.S. crude CLc1 lost 46 cents to $43.75 a barrel, while Brent LCOc1 shed 22 cents to $47.22. [O/R]