* Asia stocks set for September, Q3 gains
* Japan shares see weekly, monthly losses, but rise over
* European markets heading for sharp losses on open
* Deutsche, Wells Fargo woes drag Wall Street lower
* Oil pulls back after Thursday gains on OPEC supply curb
By Nichola Saminather
SINGAPORE, Sept 30 Asian stocks extended losses
on Friday as worries about the health of Deutsche Bank weighed
on financial shares and as oil prices inched back from near-one
month highs on scepticism over OPEC's new plan to curb output.
European markets are also poised for sharply lower starts,
with spreadbetters calling for Britains's FTSE 100 to
open down 0.9 percent, France's CAC 40 to begin the day
down 1.1 percent and Germany's DAX and Euro Stoxx 50
to trade 1.2 percent lower on the open.
MSCI's broadest index of Asia-Pacific shares outside Japan
lost 1 percent and was on track for a 0.9
percent drop for the week.
But it is poised for a 1.7 percent gain in September, and a
9 percent jump in the third quarter.
On Thursday, Wall Street lost about 1 percent as Deutsche
Bank shares slumped to a record low after a report that trading
clients had withdrawn excess cash and positions held in the
largest German lender.
The bank's U.S. shares closed down 6.7 percent at $11.48
after earlier falling to as low as $11.185.
The immediate cause of Deutsche's crisis is a fine, disputed
by the lender, of up to $14 billion by the U.S. Department of
Justice over its sale of mortgage-backed securities.
But Germany's biggest bank has struggled for years,
highlighting Europe's inability or unwillingness to push through
tough but much needed financial sector reforms.
A grilling of Wells Fargo's chief executive by U.S.
lawmakers following a scandal over its opening of client
accounts without agreement also helped push the S&P bank index
down 1.6 percent.
A raft of data out of the U.S. next week is also
contributing to market jitters, with the chance of a Federal
Reserve interest rate hike in December still seen at around
Numbers to watch include September manufacturing and August
construction spending data on Monday, non-manufacturing indexes
for September and August factory orders on Wednesday and
non-farm payrolls for September on Friday.
"People are very nervous going in to next week, with risk
factors including the U.S. election and economy, with payrolls
coming out next week," said Stefan Worrall, director of Japan
equity sales at Credit Suisse in Tokyo. "So it's normal to
expect volatility in an air pocket of uncertainty."
Japan's Nikkei closed down 1.5 percent after
weaker-than-expected consumption and inflation data. It recorded
a loss of 2.6 percent for the month, but ended the quarter up
While industrial output beat expectations in August, that
did little to lift pressure on the central bank to ease monetary
Some Bank of Japan board members doubted whether the central
bank's overhaul of its massive stimulus programme, announced
last week, would enhance flexibility of monetary policy, a
summary of opinions at the central bank's September rate review
showed on Friday.
China's CSI 300 index bucked the regional trend to
rise 0.3 percent, paring losses for the month to 2.1 percent.
China's factory activity inched up in September, in line
with analyst forecasts, but growth was tepid. Output expanded in
September but at the slowest pace in three months.
Chinese markets are closed for the National Day holiday all
Oil prices pulled back after rising 7 percent in two days
after OPEC agreed to its first output cuts in eight years.
Even if production is scaled back, some analysts doubted the
reduction would be enough to make a substantial dent in the
global crude glut.
"The accord has not yet defined individual quotas or other
forms of accountability, suggesting that this is a soft output
cut at best," Francisco Blanch, commodity and derivatives
strategist at Bank of America Merrill Lynch, wrote in a note.
"OPEC's action won't propel prices much above our $70
mid-year target," he added.
U.S. crude futures slipped 0.8 percent to $47.48.
They closed up 1.7 percent at $47.83 on Thursday, after climbing
to as high as $48.32, the highest level in almost five weeks.
They're on track for gains of 6.2 percent in September.
Brent crude also fell 0.8 percent to $48.86. They
rose 1.1 percent to $49.24 on Thursday, after earlier touching a
three-week high of $49.24. They're on track to end the month 3
The losses for stocks and oil proved a win for gold,
with the precious metal trading up 0.3 percent at $1,324 an
ounce, bringing gains for the month to 1.2 percent.
The U.S. dollar advanced 0.1 percent to 101.15 yen,
heading for a 0.1 percent gain for the week, but down 2.2
percent for September, and 2 percent for the quarter.
While the yen is headed for its third straight quarter of
gains, speculation that Japanese investors may buy more foreign
assets in their new business half-year starting from Oct. 1
could stem the Japanese currency's gains in the near term.
The euro slipped 0.1 percent to $1.12155, on track
to end the month 0.5 percent stronger.
(Additional reporting by Lisa Twaronite in TOKYO; Editing by
Jacqueline Wong and Kim Coghill)