* Markets on edge ahead of U.S. payroll data
* Rise in jobless claims spurs fresh worries about economy
* Dlr index near 3-1/2-month low, yen approaches 15-yr high
* Nikkei falls 0.3 pct, other major Asian bourses also weak
By Vikram S.Subhedar
HONG KONG, Aug 6 (Reuters) - The dollar was on the
defensive and Japan stocks fell after weak U.S. jobless claims
figures heightened worries that Friday's payroll data could
paint a bleak picture of the U.S. economic recovery.
"Growing worries about employment conditions in the United
State are keeping investors on the sidelines ahead of the jobs
data, in addition to concerns about U.S. consumer spending,"
said Fumiyuki Nakanishi, manager at SMBC Friend Securities.
Data overnight showed new U.S. claims for unemployment
benefits unexpectedly rose last week to the highest level since
early April, pushing stocks on Wall Street lower.
[]
Japan's Nikkei <> fell 0.3 percent as traders closed
positions ahead of the weekend, but is poised to end the week
slightly higher, supported by solid earnings from companies
including Toyota Corp <7203.T>.
Strong corporate earnings have supported equity markets in
recent weeks despite a string of disappointing U.S. data, but
the quarterly reporting period is now nearing an end.
So far this year the Nikkei is down nearly 9 percent, hurt
by worries that the global recovery is running out of steam and
by a stronger yen <JPY=>, which is inching towards a 15-year
high against the dollar.
The MSCI index of Asian stocks outside of Japan
<.MIAPJ0000PUS> slipped 0.2 percent, but looked set to gain 2
percent on the week and is barely in positive territory for the
year.
According to a Reuters poll, the U.S. Labor Department is
expected to report at 1230 GMT that nonfarm payrolls fell
65,000 last month after declining 125,000 in June, as temporary
workers hired to conduct the decennial census were let go.
Private sector payrolls are seen rising a modest 90,000 and the
unemployment rate is expected to clim to 9.6 percent from 9.5
percent in June.
DOLLAR, BONDS
The dollar index <.DXY> stood at 80.80, easing slightly
from late U.S. trade and near its Tuesday low of 80.469, its
lowest since mid-April.
Its 14-day relative strength index is below 30, indicating
a heavily oversold position. With the mood already so bearish,
some traders believe a result anywhere close to forecasts
<ECONUS> would likely be a relief and could see the dollar
rally.
Against the Japanese currency, the dollar traded at 85.82
yen <JPY=>, one yen above its November low of 84.82 yen, a
break of which would take it to a 15-year low.
Further yen gains could stir talk of yen-selling
intervention by Japanese authorities, though many market
players think Tokyo is unlikely to pull the trigger at this
time. []
"The market is focusing on the outlook for the U.S.
economy. If the dollar breaks below the November low, it could
enter a whole new world," said Minoru Shioiri, chief manager of
forex trading at Mitsubishi UFJ Morgan Stanley Securities.
Japanese government bonds gave up early gains in jittery
trade ahead of the U.S. data. The benchmark 10-year yield fell
below 1 percent earlier in the week.
Gold <XAU=> edged up 30 cents to $1,193.40 an ounce and was
on track for its biggest weekly gain since late June as the
dollar remained mired near multi-week lows.
Crude oil futures <CLc1> were little changed near $82 a
barrel.
U.S. wheat futures surged as much as 4.8 percent, after
settling up at the permitted daily maximum for the first time
in two years on Thursday, as Russia said it would temporarily
halt grain shipments because of a drought cutting production.
[]
(Additional reporting by Hideyuki Sano in TOKYO; Editing by
Kim Coghill)
