U.S. STOCK MARKET, BONDS

US stocks tumbled following weak employment and manufacturing data, and as the Federal Reserve stuck to its aggressive economic stimulus program.

The Dow Jones Industrial Average lost 138.85 (0.94 per cent) to 14,700.95. The broad-based S&P 500 fell 14.87 (0.93 per cent) to 1,582.70, while the tech-rich Nasdaq Composite Index sank 29.66 (0.89 per cent) to 3,299.13.

Wednesday's losses came after the ADP job report showed April job growth fell to the slowest level in seven months. Markets were also disappointed by an Institute for Supply Management report that showed manufacturing activity slowed sharply in April.

Meanwhile the Federal Reserve kept its $US85 billion ($A82.36 billion) a month bond-buying program in place, while raising the possibility that it could do more if necessary.

The Federal Reserve currently buys $US85 billion ($A82.36 billion) in government bonds each month, and officials explicitly signalled they could increase these purchases in their latest FOMC statement. Earlier this year, they had discussed gradually winding down the program.

EUROPEAN STOCKS, BONDS

The British stock market rose in low-volume deals, amid a public holiday in much of Asia and Europe, before the Federal Reserve's latest interest rate call and following disappointing US data.

London's FTSE 100 index of top companies won 0.33 per cent to 6,451.29 points, as dealers also absorbed better-than-expected British manufacturing data.

In foreign exchange activity, the euro rallied to a nine-week high at $1.3243 on growing hopes of a rate cut from the European Central Bank on Thursday.

The single currency later stood at $1.3186, up from $1.3165 late in New York on Tuesday. Most European markets were closed for the May Day public holiday.

ASIA-PACIFIC STOCK MARKETS, BONDS

Tokyo stocks closed 0.44 per cent per cent lower as the yen's strength and gloomy economic data from the eurozone offset positive sentiment after the S&P 500 closed at another record high.

The benchmark Nikkei 225 index at the Tokyo Stock Exchange, which was one of the few financial markets in Asia open because of a public holiday, finished down 61.51 points to 13,799.35 on Wednesday.

The broader Topix index of all first-section shares slipped 0.58 per cent, or 6.76 points, to 1158.27. Markets in China, Hong Kong, South Korea, India, the Philippines, Malaysia, Thailand, Taiwan and Singapore were all closed on Wednesday for the May Day holiday.

The NZX 50 Index fell 11.35 points, or 0.2 per cent, to 4603.01.

The Australian market looks set to open lower after falls on Wall Street following weak employment and manufacturing data, and as the Federal Reserve stuck to its aggressive economic stimulus program.

At 0751 AEST on Thursday, the June share price index futures contract was down 24 points at 5,137. In economic news on Thursday, the Australian Bureau of Statistics is due to release March building approvals figures as well as international trade price indexes for the March quarter.

In equities news, APN News & Media and Hutchison Telecom have annual general meetings.

In Australia, the market on Wednesday, closed lower, with weakness among the major miners helping snap a two-day rally.

COMMODITIES

Weaker commodities prices in offshore trade, as well as some disappointing Chinese manufacturing data prompted investors to bail out of resources-linked companies.

The benchmark S&P/ASX200 index was DOWN 25.00 points, or 0.48 per cent, at 5,166.2 points, while the broader All Ordinaries index was DOWN 24.70 points, or 0.48 per cent, to 5,143.9 points.

Oil prices sank on fresh signs of economic weakness in the United States and China and after a US inventory report showed crude stocks at their highest point in more than 30 years.

US benchmark West Texas Intermediate for June delivery settled at $91.03 a barrel, down $2.43 or about 2.6 per cent. European benchmark Brent futures lost $2.42 to close at $99.95 a barrel.

The decline came after a stream of disappointing economic data from the US and China, the world's top two oil-consuming countries.

The US private sector added just 119,000 jobs in April, the lowest level in seven months, according to payrolls firm ADP.US manufacturing activity also slowed in April, according to a report by the Institute for Supply Management.

The ISM manufacturing purchasing managers index (PMI) fell to 50.7 in April from 51.3 in March, not much above the 50-point line that separates growth and contraction. Earlier in the day, China reported a fall in manufacturing activity, with the Chinese PMI dipping to 50.6 in April from 50.9 in March.

Gold futures settled at a one-week low, but did pare losses in electronic trading after the Federal Open Market Committee said it could increase as well as reduce its monthly bond-purchasing program.

Gold for June delivery, the most active contract, on Wednesday settled at a one-week low of $US1,446.20 a troy ounce, down $US25.90, or 1.8 per cent, on the Comex division of the New York Mercantile Exchange ahead of the FOMC statement.

Base metals closed sharply lower after prices tanked throughout the session, triggered by weak manufacturing data out of China and exacerbated as further data disappointed ahead of a US monetary-policy statement.

At the close of open-outcry trading, LME three-month copper was down some 3.8 per cent, having beached the key psychological level of $US7,000 per ton level and re-entered a bear market.

Lead prices hit their lowest since September 2012, while nickel slipped sharply to hit its lowest price since July 2009. The house attributed the decline to poor manufacturing data out of the US and China, noting a rise in trading volumes as prices started their spiral downward. Compiled from MORRISON SECURITIES PTY. LTD.