GLOBAL MARKETS-Asian shares edge up; caution before US data

                                
 * Asian shares edge higher after hefty central bank cuts
                                
 * Risk aversion remains, sending dollar higher
                                
 * Focus on U.S. employment data, fate of U.S. auto makers
 (Repeats to additional subscribers with no changes to text)
                                
 By Rafael Nam
                                
 HONG KONG, Dec 5 (Reuters) - Asian shares edged higher on
Friday following record rate cuts by central banks in Europe,
though plenty of caution remained, lifting the dollar ahead of
what is expected to be dismal U.S. employment data.
                                
 Oil prices steadied after slumping $3 on Thursday to their
lowest level in nearly four years under the weight of bleak
economic data that could spell a slump in global energy demand.
                                
 Risk aversion remained widespread, even though some
analysts are now calling the value of assets such as stocks at,
or close to, rock bottom.
                                
 Investors are also eyeing nervously the fate of U.S. auto
makers, which are pleading with the government for billions of
dollars in aid to ensure their survival. [ID:nL5334501]
                                
 Reflecting the caution, major European indexes were set to
open sharply lower, following losses on Wall Street on
Thursday, financial bookmakers said.
                                
 Britain's FTSE 100 <.FTSE> was seen opening down as much as
1.6 percent, with Germany's DAX <.GDAXI> seen down as much as
1.5 percent and France's CAC 40 <.FCHI> 2.3 percent lower.
                                
 "We are staring at great values here but people are not
willing to accept it because of all the uncertainty that's
around the place," said Michael Heffernan, strategist at
Austock Securities in Australia.
                                
 The MSCI index of Asian shares outside Japan
<.MIAPJ0000PUS> rose 0.2 percent as of 0700 GMT, though it was
still en route to a weekly loss of nearly 4 percent.
                                
 The Nikkei average <.N225> ended flat, while key indexes in
South Korea <.KS11>, Hong Kong <.HSI> and Singapore <.FTSTI>
were up between 1 and 2 percent. Shares in Shanghai <.SSEC>
gained 0.9 percent.
                                
 But India's benchmark index <.BSESN> fell 1.8 percent,
giving up part of gains of more than 5 percent on Thursday.
Taiwan <.TWII> fell 0.7 percent, marking its fourth consecutive
session in the red.
                                
 The overall gains followed steep rate cuts by central banks
worldwide as they respond to a deepening global downturn,
though doubts remain about whether the actions are enough to
turn around frail investor confidence.
                                
 On Thursday the European Central Bank dropped its benchmark
rate by 0.75 percentage point, while Sweden lopped 1.75
percentage points and the Bank of England cut rates by 1
percentage point. [ID:nHKG108699]
                                
 Governments are also taking action. South Korea on Friday
pledged to do more to keep Asia's fourth-largest economy on
tack, and listed automobile, semiconductor and petrochemical
firms as those hardest hit by the global downturn.
[ID:nSEO342138]
                                
 CONTRACTION FORECAST
                                
 Investors were shifting their focus to U.S. employment data
due out later on Friday, with a Reuters poll of economists
forecasting a contraction of 340,000 in payrolls in what would
the worst monthly losses since 1982. [ID:nN04412515]
                                
 The report could thus become the latest bleak signal about
the global economy. Companies from AT&T Inc <T.N> to banks such
as Credit Suisse <CSGN.VX> are cutting jobs, while U.S. auto
makers are struggling as they face the worst economic crisis
since the Great Depression.
                                
 "Concerns have spread that financial institutions including
Japanese ones wouldn't be able to escape unscathed if big U.S.
auto makers were to go bankrupt," said Tsuyoshi Segawa, an
equity strategist at Shinko Securities in Tokyo.
                                
 "We have no idea where and what could happen if a huge
corporation like them failed."
                                
 The ensuing risk aversion is benefitting asset classes seen
as relative safe-havens such as the dollar.
                                
 The dollar climbed 0.1 percent to 92.32 yen <JPY=>, after
hitting its lowest point in five weeks in U.S. trading.
                                
  The euro was nearly flat at $1.2780 <EUR=> and also little
changed against the yen at 117.95 <EURJPY=R>, after the single
currency gained on Thursday when investors lauded the ECB's
bolder-than-expected interest rate cut as a proactive step to
stave off a deep recession.
                                
 Oil <CLc1> steadied at $43.91 a barrel after slumping more
than 6 percent to its lowest level since January 2005 on
Thursday. Crude prices have fallen some 16 percent since last
week, and are now more than $100 below the all-time high of
$147.27 hit in July.
                                
 Gold <XAU=> also steadied at $76.05 an ounce after its fall
on Thursday.