* Asian shares fall on global econ, US auto worries
* Risk aversion returns, sending yen, bonds higher
* Oil prices edge up, extending rally
(Repeats to additional subscribers with no change to text)
By Rafael Nam
HONG KONG, Dec 11 (Reuters) - Asian shares fell on Thursday
as concerns over the global economy once again took centre
stage, while renewed uncertainty about the U.S. auto bailout
plan sparked a subtle shift towards assets seen safer such as
the yen.
Regional bonds held firm, reflecting the aversion to risk,
while oil prices edged up after rallying a day earlier on signs
Saudi Arabia had slashed supplies to customers.
South Korea's central bank on Thursday cut interest rates
by 1 percentage point, becoming the latest central bank to
respond aggressively to a sharply slowing economy and falling
inflation.
Recent economic data continues to highlight the extent of
that global slowdown. China's exports shrank unexpectedly in
November, while industrial output in several European economies
sank, according to data on Wednesday. []
"As a slew of dismal economic indicators have shown, the
global economy is weak. We can't yet be optimistic," said
Yousuke Hosokawa, treasury department senior manager at Chuo
Mitsui Trust and Banking in Japan.
The MSCI index for Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> was down 0.2 percent at 0240 GMT, paring gains
of 4.5 percent a day earlier when investors had been encouraged
by talks a U.S. bailout plan for auto makers had been reached.
That confidence waned as some Republicans in the U.S.
Congress threatened procedural moves to slow or even block the
effort to authorise up to $14 billion in bridge loans to
struggling auto makers including General Motors Corp <GM.N>.
Corporate news has added to worries about global growth.
Major companies worldwide such as Rio Tinto <RIO.AX> are
announcing steep job cuts as they seek ways to cope with a
crisis of a magnitude not seen in decades.
Japan's Nikkei average <> fell 0.8 percent. Major
indexes in Australia <> and Singapore <.FTSTI> lost more
than 1 percent each, while Shanghai <> and Hong Kong
<> posted more modest falls.
South Korea's KOSPI <>, however, gained 0.7 percent
after the central bank cut its key interest rate by an
unprecedented 100 basis points to a record low 3 percent,
double the reduction that analysts had forecast.
[]
FEARING 2009?
The low-yielding Japanese yen advanced against major
currencies, benefitting from the reduced willingness to
tolerate risk, though trading is expected to remain slow ahead
of the end of what has been a tough year. Few expect 2009 to be
any better.
The Asian Development Bank said on Thursday growth in
developing nations in the region is seen slowing to an
eight-year low of 5.8 percent in 2009, joining the chorus of
increasingly pessimistic calls made from brokerages to
international bodies. []
The dollar fell 0.2 percent to 92.60 yen <JPY=> from late
U.S. trading. The euro dipped 0.1 percent to 120.65 yen
<EURJPY=R>.
The European single currency was little changed at $1.3017
<EUR=> after hitting a two-week high of $1.3071 on electronic
trading platform EBS in U.S. trading.
Japanese government bonds (JGB) were steady to firm. The
worries about a deeper global recession are supporting demand
for safer, shorter-dated debt maturities.
The five-year JGB yield dropped half a basis point to 0.905
percent, while the two-year yield slipped a basis point to
0.570 percent <JP2YTN=JBTC>.
Oil prices edged higher, extending gains by 21 cents to
$43.73 a barrel <CLc1>. OPEC is widely expected to announce
more output cuts at its meeting next week, with signs that top
oil exporter Saudi Arabia already pre-empting that outcome by
curtailing supply. []
(Additional reporting by Kaori Kaneko in TOKYO; Editing by
Dhara Ranasinghe)
