* European shares likely to open flat to lower
* Asian shares edge back towards nearly 3-month high
* Dollar slips on weak U.S. durable goods orders
* Kiwi struggles, hurt by RBNZ statement on future hikes
(Repeats to more subscribers)
By Elaine Lies
TOKYO, July 29 (Reuters) - Asian stocks edged back up
towards a three-month high and the dollar eased towards
three-month lows on Thursday, hit by soft U.S. data that
highlighted the patchy nature of the U.S. economic recovery.
An unexpected drop in U.S. June durable goods orders and a
downbeat Federal Reserve take on the economy were the latest in
a string of lacklustre indicators to suggest that the U.S.
economy is losing steam, broadly dampening investor sentiment.
European shares were expected to open little changed to
lower as investors waited for more company earnings results and
a raft of euro zone economic data, including readings on
consumer and business sentiment. [] []
Traders said a recent move back into riskier assets had
cooled after the Fed's Beige Book of anecdotal reports pointed
to a less-than-booming U.S. recovery, with sluggish housing
markets and sales of costly items such as new cars weakening.
[]
"Shares are taking a breather today as weak U.S. economic
data is weighing on sentiment, especially towards technology
exporters," said Lee Jin-woo, a market analyst at Mirae Asset
Securities.
Asian shares dipped in early trade before edging back up
toward levels hit the day before, when they marked their
highest since May 5. Materials and consumer discretionary
shares saw solid buying interest.
The MSCI index of Asia Pacific shares ex-Japan
<MIAPJ0000PUS> clawed up 0.1 percent, with Shanghai <> and
Taiwan <> shares gaining modestly while Australian shares
were flat.
Japan's Nikkei average <> lost 0.6 percent to 9,696.02
as investors took profits after a rally that had lifted the
benchmark to a two-week closing high on Wednesday [].
Panasonic Corp <6752.T> tumbled 7.7 percent after sources
told Reuters it plans to acquire the shares it does not already
own in Sanyo Electric Co <6764.T> and Panasonic Electric Works
Co Ltd <6991.T>. Sanyo shares soared more than 26 percent at
one point. []
Attention is now turning to U.S. jobless claims later in
the day and U.S. second quarter GDP on Friday, with analysts
saying it was difficult to predict longer-term market direction
until these reports, and non-farm payrolls next week, come out.
"I don't think shares are set for a rally, unless these
indicators show the economy is improving," said Hiroaki
Osakabe, fund manager at Chibagin Asset Management in Tokyo.
"In Japan's case, poor indicators may keep the yen strong
(as investors seek safe havens) and that will make it very hard
for the Nikkei to rise."
A Reuters poll showed annual U.S. growth in the second
quarter was expected to slow to 2.5 percent from 2.7 percent in
the first quarter amid a cooling in consumer demand, and a
recent flurry of weak data suggest it lost more momentum
heading into summer. []
KIWI STRUGGLES, DOLLAR SOFT
The New Zealand dollar <NZD=D4> fell sharply after the
Reserve Bank of Zealand signalled the pace of further interest
rate hikes would be less than earlier thought, though it later
staged a mild recovery. []
The central bank lifted interest rates by a quarter point
on Thursday, as widely expected, but said further hikes would
probably be more gradual because of a deteriorating outlook for
the country's main trading partners and subdued domestic
demand.
The kiwi fell to as low as $0.7207, from $0.7280 before the
announcement, before staging a mild recovery.
"The neutral statement and revised market expectations for
future rate decisions will help in taking upside pressure off
the kiwi," said Josh Williamson, an analyst at Citi.
The dollar index <.DXY> against a basket of major
currencies was down 0.2 percent at 81.990 after the weak U.S.
data, with near-term support at 81.44, the 50 percent
retracement of the index's move from a low of 74.17 in December
2009 to a high of 88.71 on June 7.
The greenback also lost ground against the yen <JPY=>,
edging down 0.3 percent to 87.23 yen.
The euro <EUR=> consolidated near $1.30, holding near
11-week highs against the dollar as concerns shifted from
Europe's debt crisis to the uneven U.S. economy.
But gold rebounded, although gains could be limited after
holdings in the world's largest gold-backed ETF
(exchange-traded fund) SPDR Gold Trust <GLD.P> dropped to their
weakest since June.
Spot gold <XAU=> rose to $1,166.50 an ounce by 0600 GMT
after falling as low as $1,156.90 on Wednesday, its weakest
since late April.
U.S. crude futures <CLc1> were littled changed at just over
$77 a barrel after falling for a second session overnight on a
suprise build in U.S. crude oil inventories. []
(Additional reporting by Jungyoun Park and Anirban Nag;
Editing by Kim Coghill)
