* China benchmark money rate shoots up
* China's manufacturing expands at best pace in 7 mths -survey
* Swiss franc holds near 2-yr high vs dollar
By Dominic Lau
TOKYO, Oct 24 (Reuters) - Chinese shares slipped in volatiletrade on Thursday as a further spike in China's money-marketrates tempered the effect of a survey showing a pick-up inmanufacturing.
China's benchmark seven-day repo rates opened up nearly afull percentage point at 5 percent after the central bank letcash drain from the money market for a second week.
The Chinese central bank declined to inject cash for a thirdday as regulators showed signs of concern that loose liquiditymight again be fuelling risky credit growth.
Australian shares advanced 0.3 percent and theAustralian dollar rose 0.3 percent to $0.9650 on theday. China is Australia's biggest export market.
China's CSI300 index dipped 0.2 percent in choppytrade after sliding 2.1 percent in the previous two sessions,and Hong Kong's Hang Seng Index dropped 0.7 percent.
Japan's Nikkei share average eased 0.4 percent inrelatively light trade, also hurt by a firmer yen against thedollar.
But MSCI's broadest index of Asia-Pacific shares outsideJapan ticked up 0.1 percent, having fallen 0.9percent on Wednesday to end a four-day winning streak.
Financial bookmakers expected major European indexes to open up as much as 0.5 percent, reboundingfrom Thursday's decline.
"I wouldn't add on any new positions from here," said HongHao, chief strategist at Bank of Communications InternationalSecurities.
"Cash demand is going to be high in October because peoplehave to pay taxes and banks have to park reserves with thecentral bank, but I think people ought to see that the People'sBank of China has already tightened because they have not soldany yuan, allowing the yuan to spike," he added.
"Now with the property restrictions starting to appear, thatusually doesn't bode well for the stock market."
Strong new orders drove the fastest expansion in China'smanufacturing sector in seven months in October, according tothe Markit/HSBC Purchasing Managers' Index, more evidence thatthe world's second-largest economy is stabilising although astrong rebound remains elusive.
Before the concerns over China checked the marketbullishness, global equity markets had been rallying after theresolution of the U.S. budget impasse and on expectations theFederal Reserve would extend its cheap money stimulus into 2014.
After a run of record highs, the U.S. Standard & Poor's 500index fell 0.5 percent on Wednesday as shares ofheavy-equipment maker Caterpillar and semiconductorcompanies tumbled after they reported earnings.
According to Thomson Reuters I/B/E/S, the one-month earningmomentum for S&P 500 companies deteriorated to minus 3.6 percentfrom minus 1.5 percent last month.
U.S. S&P E-mini futures added 0.3 percent in Asiantrade on Thursday.
The dollar was at 0.8916 Swiss franc, just above atwo-year low of 0.8908 hit on Wednesday. It was holding at97.375 yen, near a two-week low touched in the previoussession.
Against a basket of major currencies, the dollar wasdown 0.1 percent at 79.211, within striking distance from aneight-month low of 79.137 touched on Wednesday.
U.S. Treasury yields fell to three-months lows on growing bets that the Fed will maintain its stimulus into next year.
U.S. crude prices climbed 0.6 percent to about $97.44a barrel after falling to a 3-1/2 month low of $96.16 onWednesday.
Gold gained 0.3 percent to around $1,336 an ounce,recouping some of Wednesday's lost ground.