GLOBAL MARKETS-Asian shares fall on bleak Japan data, yen up

                                
 * Asian shares slip as Japan posts anaemic Q2 growth
                                
 * Weak Japan data underscores worries about global slowdown
                                
 * Yen inches up as investors reduce risk, look to havens
                                
 * Dollar retains strength vs major currencies
                                
 By Kevin Yao
                                
 SINGAPORE, Aug 16 (Reuters) - Japanese shares fell on
Monday after data painted a gloomy picture for the economy,
fuelling worries that a global recovery is rapidly faltering
and spurring investors to shed risky assets.
                                
 A key index of 300 leading European shares <.FTEU3> opened
up 0.2 percent, with firmer oil <CLc1> and metal prices
providing some support despite weakness in Asian stocks and
losses on Wall Street on Friday. [ID:nLDE67C1FZ]
                                
 Japan's economy expanded just 0.1 percent in the quarter to
June, far less than the 0.6 percent analysts had expected, as
export growth moderated and a recovery in consumption driven by
government stimulus ran out of steam. [ID:nTOE67901S]
                                
 Slowing growth in the country's key export destinations,
such as the United States and China, an uneven recovery in
Europe and a strong yen are clouding the outlook further.
                                
 Japan's Nikkei <.N225> fell 0.6 percent, after an early
drop of as much as 1.7 percent, weighing on the rest of the
region, though technical charts showed it was approaching
oversold levels, suggesting it may be due for a rebound.
                                
 The MSCI share index for Asia excluding Japan
<.MIAPJ0000PUS> fell 1 percent at one point but later clawed
back most of the losses as investors snapped up Chinese stocks
on optimism that the economy remains on strong growth track.
                                
 Economists are confident China's economic growth in 2010
will beat last year's outcome of 9.1 percent and catapult China
ahead of Japan as the world's second-largest economy.
[ID:nTOE67A01A]
                                
 The MSCI Asia ex-Japan index lost nearly 2.9 percent last
week on growing concerns about the global recovery, its worst
performance in six weeks.
                                
 "The yen's rise may begin to hurt export growth in the
latter half of the current fiscal year. I think the Bank of
Japan and the government need to take decisive action against
currency moves. Solo currency intervention is possible if the
yen approaches 80 to the dollar," said Takeshi Minami, chief
economist at Norinchukin Research Institute.
                                
 "If that is accompanied by monetary easing by the Bank of
Japan, it may have a certain effect."
                                
 But most investors doubted a direct market intervention by
the Bank of Japan was on the cards and argued instead the
central bank may opt for more quantitative easing to support
growth.
                                
 Economists polled by Reuters expect Japan's economy to slow
further in coming quarters, with some predicting a double-dip
recession, and the yen's recent rise to 15-year highs against
the dollar is likely to add pressure on exports.
[ID:nSLAAJE6A1]
                                
 South Korean shares <.KS11> fell 0.2 percent, led by
technology exporters and banking stocks including LG
Electronics Inc <066570.KS> and KB Financial Group Inc
<105560.KS> as traders awaited data on U.S. industrial
production and earnings from key U.S. retailers for further
clues on corporate and consumer demand.
                                
 "Concern about the economy is fueling foreign selling. We
are also seeing substantial programme selling as the economic
and stock market outlooks grow more uncertain," said Lee
Sun-yeb, a market analyst at Shinhan Investment Corporation in
Seoul.
                                
 YEN GAINS
                                
 The yen firmed broadly as high-yielding currencies
faltered, with talk of possible demand from Japanese exporters
and investor fund repatriation lending it additional support.
                                
 The flight from risky assets sent more buyers into
government bonds as investors looked for safe havens.
                                
 The dollar fell 0.4 percent to 85.81 yen <JPY=> and the
euro shed 0.1 percent to 109.81 yen <EURJPY=R>.
                                
 The New Zealand dollar fell 0.7 percent against the yen to
60.43 yen <NZDJPY=R> and the Australian dollar slipped 0.6
percent to 76.44 yen <AUDJPY=R>.
                                
 The dollar fell a third of a percent against a basket of
currencies <.DXY> after briefly touching its highest since July
23.
                                
 Japanese government bond futures hit their highest in more
than seven years, with September 10-year futures rising 0.19
point at 142.58 <2JGBv1>, after advancing as high as 142.62,
their highest since June 2003.
                                
 Gold <XAU=> gained $4 to $1,218.65 an ounce, its strongest
in more than a month, as pessimism about the global economic
recovery pushed equities down, though a firmer U.S. dollar
could cap further gains.
                                
 U.S. crude <CLc1> gained 0.49 cents to $75.88 a parrel,
after suffering its worst week weekly performance in six
weeks.
 (Additional reporting by Elaine Lies in TOKYO and Jungyoun
Park in SEOUL; Editing by Kim Coghill)