By Wayne Cole
SYDNEY (Reuters) - Asian share markets got off to a sluggish start on Monday in a packed week for global economic news that is book ended by the U.S. jobs report, a key input into the Federal Reserve's decision on when to start lifting rates.
Trading was also thinned by the absence of Japanese markets which are on holiday from Monday to Wednesday. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> edged down 0.2 percent.
Australian stocks <.AXJO> were a fraction lower on concerns over bank earnings while South Korea's main index <.KS11> inched up 0.2 percent.
A private measure of Chinese manufacturing activity due later on Monday is expected to stay subdued and only add to speculation of more policy stimulus there.
The HSBC/Markit PMI for South Korea set an ill omen, falling to a six-month trough of 48.8 in April.
The British election on Thursday will add political uncertainty to the mix, with neither of the major parties likely to win a clear majority of seats.
On Wall Street, the Dow <.DJI> had ended Friday up 1.03 percent, while the S&P 500 <.SPX> gained 1.09 percent and the Nasdaq <.IXIC> 1.29 percent.
One major development last week was a sharp and sudden back up in Eurozone yields that suggested the long bull run in bonds might finally have run out of steam.
Tentative signs of an economic pick up in the region sent German 10-year Bund yields up nearly 21 basis points for the week, the biggest such move since June 2013.
Investors have also been tempted by a rush of longer-dated issuance from major corporates which offer better returns, leading them to pare back sovereign holdings.
As a result 10-year U.S. Treasury yields were at a seven-week high of 2.124 percent.
"We think bond markets are already priced for very gloomy medium term economic scenarios of low growth and little inflation pressure for years ? almost 'as good as it gets' for bond markets," said Peter Schaffrik, chief European macro strategist at RBC Capital Markets.
"We think the risks are skewed heavily to the upside and expect higher yields over the course of the year against a more positive economic backdrop in the US and Europe."
The jump in bund yields had combined with a run of less than impressive U.S. economic data, to lift the euro to a nine-week peak of $1.1289 on Friday. There it ran into profit taking and was hovering around $1.1187 in Asia on Monday.
The dollar fared better on the yen, rising to 120.16 yen but short of tough chart resistance at 120.84. Against a basket of currencies, the dollar was steady at 95.287 <.DXY>.
The Australian dollar remained on the defensive at $0.7829 amid intense speculation the Reserve Bank of Australia (RBA) will cut interest rates to a fresh record low of 2.0 percent at a policy meeting on Tuesday.
In commodity markets, oil prices had eased off 2015 highs after Iraq said its crude exports hit a record in April, keeping Middle East production well above demand.
Brent crude
(Editing by Shri Navaratnam)
