  The new transient X-ray pulsar XTE J0111.2-7317 was observed with Advanced
Satellite for Cosmology and Astrophysics (ASCA) on 1998 November 18, a few days
after its discovery with the Proportional Counter Array onboard the Rossi X-ray
Timing Explorer. The source was detected at a flux level of 3.6x10^-10 erg
cm^-2 s^-1 in the 0.7--10.0 keV band, which corresponds to the X-ray luminosity
of 1.8x10^38 erg s^-1, if a distance of 65 kpc for this pulsar in the Small
Magellanic Cloud is assumed. Nearly sinusoidal pulsations with a period of
30.9497 +/- 0.0004 s were unambiguously detected during the ASCA observation.
The pulsed fraction is low and slightly energy dependent with average value of
\~27%. The energy spectrum shows a large soft excess below ~2 keV when fitted
to a simple power-law type model. The soft excess is eliminated if the spectrum
is fitted to an ``inversely broken power-law'' model, in which photon indices
below and above a break energy of 1.5 keV are 2.3 and 0.8, respectively. The
soft excess can also be described by a blackbody or a thermal bremsstrahlung
when the spectrum above ~2 keV is modeled by a power-law. In these models,
however, the thermal soft component requires a very large emission zone, and
hence it is difficult to explain the observed pulsations at energies below 2
keV. A bright state of the source enables us to identify a weak iron line
feature at 6.4 keV with an equivalent width of 50 +/- 14 eV. Pulse phase
resolved spectroscopy revealed a slight hardening of the spectrum and marginal
indication of an increase in the iron line strength during the pulse maximum.
