European stock futures fell, Asian shares dropped and the Australian dollar weakened as manufacturing data in China and Japan added to global slowdown signs. The euro slid to a three-week low before a report that is forecast to show record unemployment in member states. Futures on the Euro Stoxx 50 Index (SPX) slid 0.6 percent as of 7:06 a.m. in London, while contracts on the Standard & Poor’s 500 Index lost 0.3 percent. The MSCI Asia Pacific Index slipped 0.5 percent, the worst start to a quarter in a year. The S&P GSCI Index of commodities fell 0.4 percent. Australia’s dollar and the euro weakened 0.3 percent. Financial markets in China, Hong Kong and South Korea are closed for holidays. Chinese factory output contracted for a second month in September and big Japanese manufacturers became more pessimistic in the last quarter, according to the findings of official surveys published today. South Korea announced a third straight decline in monthly exports and shipments from Indonesia slumped the most in three years. The jobless rate in the euro area climbed to 11.4 percent in August, the most in data going back to 1990, a Bloomberg survey showed before a report today. “People still have to downgrade their assumptions for economic growth, and that will probably flow through the next quarter or next half in lower profit assumptions for companies,� said Tim Schroeders, who helps manage $1 billion in equities at Pengana Capital Ltd. in Melbourne. “Given markets are closed in many parts, I think we are probably in for a relatively quiet, but soft start to the week.� Komatsu, Toyota About two stocks fell for every one that rose on the MSCI Asia Pacific Index. (MXAP) Komatsu Ltd., a Japanese maker of construction equipment maker that gets about 14 percent of sales from China, slipped 1 percent in Tokyo. Toyota Motor Corp., the world’s biggest carmaker by market value, fell 1.7 percent. China’s Purchasing Managers’ Index was 49.8 in September after a 49.2 reading in August, according to a report today by the National Bureau of Statistics and the China Federation of Logistics and Purchasing. That compares with the median forecast of 50.1 in a Bloomberg News survey. A separate gauge published on Sept. 29 showed output contracted for an 11th straight month. In Japan, the Tankan index for large manufacturers fell in the July to September quarter to minus 3 from minus 1, the fourth negative reading, the Bank of Japan said today, after data last week showed a second decline in industrial production in August and the country remained in deflation. Koriki Jojima was appointed Japan’s finance minister today, the government said. Europe Woes The S&P 500 lost 1.3 percent last week, the worst performance since June, on concern Europe’s debt crisis will worsen and global stimulus measures may not be enough to boost economic growth. An Oct. 5 report is forecast to show the U.S. jobless rate rose to 8.2 percent last month from 8.1 percent in August, economists surveyed by Bloomberg estimated. The dollar and yen rose versus most of their 16 major counterparts on demand for safe-haven assets. The greenback bought 77.87 yen from 77.96. Japan’s currency advanced 0.3 percent to 99.91 yen per euro and added 0.4 percent to 80.58 yen per Australian dollar. The euro fell as much as 0.4 percent to $1.2804, the weakest level since Sept. 11. Europe faces a month that may decide the success of the European Central Bank’s bid to end the debt crisis as leaders navigate a tougher approach from creditor countries, unrest in Spain and a looming report on Greece’s finances. With the first of three summit meetings that European Union President Herman Van Rompuy has called “crucial� taking place in Brussels on Oct. 18-19, investor sentiment toward the euro is on the wane. RBA, Commodities Australia’s dollar touched the lowest in more than a year against its New Zealand peer before the Reserve Bank of Australia holds a policy meeting tomorrow. Swaps indicate an 80 percent chance the RBA will cut its benchmark interest rate by 25 basis points. The S&P GSCI fell for the first time in three days, led by oil and metals. Crude for November delivery slid 0.7 percent to $91.52 a barrel, three-month copper in London dropped 0.4 percent to $8,175 a metric ton and spot gold declined 0.3 percent to $1,766.95 an ounce. Corn in Chicago rose for a second day, gaining 1.5 percent to $7.6725 a bushel, as the U.S. reported an unexpected plunge in domestic inventories to an eight-year low. Wheat and soybeans retreated at least 0.5 percent. To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net; Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

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