Asia markets slip; Europe flat

TOKYO -- Asia's four-day stock market rally petered out today as investors turned cautious. European markets were little changed.

Markets across Asia rose in early trading following another gain overnight on Wall Street and news that South Korea left its key interest rate at a record low, signaling that most Asian central banks are in no hurry to raise borrowing costs as their economies recovery. Australia also reported an unexpected surge in the number of jobs last month.

But some investors started selling, thinking the recent rally had run its course now that China had reported positive industrial production and retail sales figures the previous day.

Japan's Nikkei 225 Index dropped 67.2 points, or 0.7 percent, to 9,804.49, while Hong Kong's Hang declined 229.64, or 1 percent, to 22,397.57. South Korea's Kospi slid 1.4 percent to 1,572.73.

In mainland China, Shanghai Composite index reversed an early gain to dip 0.1 percent at 3,173.2.

European markets opened narrowly mixed, with Britain's FTSE up 0.3 percent to 5,281.18. Germany's DAX was unchanged at 5,668.470, while France's CAC 40 traded flat at 3,812.49.

In Australia, Australia's S&P/ASX200 benchmark fell 0.2 percent to 4,747.9. The government reported a large increase in jobs last month, with the number of people employed rising by 24,500 in October. Still, the jobless rate rose to 5.8 percent, showing the pace of job creation was lagging the number of people looking for work.

Though another sign Australia's economy was rebounding, the news put pressure on the country's central bank to raise interest rates again. The Australian dollar rose strongly as a result, hitting its highest point this year at 0.9369 against the dollar.

Overnight, Wall Street climbed higher in light trading with some investors off for Veterans' Day, lifted by weakness in the dollar, the Chinese numbers and signals from Federal Reserve officials that borrowing rates would remain low.

The Dow Jones industrial average rose 44.29, or 0.4 percent, to 10,291.26, at one point hitting its highest since Oct. 3, 2008. The broader Standard & Poor's 500 index rose 5.50, or 0.5 percent, to 1,098.51, while the Nasdaq composite index rose 15.82, or 0.7 percent, to 2,166.90.

U.S. futures pointed to a lackluster opening on Wall Street. Dow futures lost 0.2 percent while S&P futures shed 0.2 percent.

Oil prices hovered above $79 a barrel in Asia, with benchmark crude for December delivery down 3 cents to $79.25. The contract added 23 cents.

Gold prices continued their swing higher, rising $2.9, or 0.3 percent, to $1,117.5 an ounce.

The dollar slipped to 89.75 yen from 89.84 yen, and the euro was off $1.4967 from $1.4977.

-- The Associated Press