* Stocks fall on Greece, U.S. rate worries but support seen
* Nikkei down 0.8 pct, MSCI ex-Japan off 0.45 percent
* Euro losses continue; yen, Australian dollar gain
* Top Asian companies upbeat on 2010 prospects
(Repeats to more subscribers)
By Raju Gopalakrishnan
SINGAPORE, April 8 (Reuters) - Asian stocks fell on
Thursday after racking up strong gains in recent weeks, while
the euro slipped further as Greece's borrowing costs reached a
new high.
Tokyo's Nikkei index <> slipped 0.8 percent to 11,204
points as a stronger yen provided investors an excuse to cash
out after the market reached an 18-month high earlier in the
week.
But many market watchers saw it as only a mild correction,
pointing to expectations for improving corporate earnings and
continued strong economic growth in much of Asia.
"Though it's still hard to say for sure, I think this is
just an adjustment," said Takashi Ushio, head of the investment
strategy division at Marusan Securities.
"After all, we have (company) results really starting up in
about two weeks, and these are likely to prove supportive."
U.S. stocks fell as much as 0.7 percent overnight after a
top Federal Reserve official said interest rates should not
stay low for much longer. While that is not seen as the
majority view at the central bank, the comments gave investors
an excuse to take profits. []
Ultra-low interest rates and cheap money have helped fuel
strong market gains in much of the world over the last year.
The yen gained both on a retreat in risk appetite due to
Greece and a drop in U.S. Treasury yields following strong
demand at a 10-year auction, putting pressure on shares of
Japanese exporters like Sony Corp <6758.T>, which fell 2
percent.
The euro <EUR=> was weak around $1.33, its softest level in
two weeks, and grinding nearer and nearer to its March trough
of $1.3267, which at the time was the lowest it had been since
May.
Traders say loss-limiting sell orders would likely trigger
below that point and they then expect some support at round
numbers such as $1.3200 and $1.3100. But with the euro firmly
in a downtrend, $1.30 is seen as the next psychological point.
"There is evidence of contagion from Greece in global
markets today," said Greg Gibbs, a forex strategist at the
Royal Bank of Scotland in Sydney. "It's not too severe but it's
there. We're seeing the yen a bit stronger and the euro a bit
weaker."
The MSCI's broad measure of shares in the Asia-Pacific
outside Japan <.MIAPJ0000PUS> was down 0.45 percent after
running up gains of 4.86 percent since the beginning of the
year.
But there is underlying support in regional stock markets
with top Asian companies at their most optimistic since the
global financial crisis nearly two years ago.
A Reuters check-up of 100 leading Asian companies, from
Japan to India, showed government stimulus-fuelled recovery
across Asia had filtered through to the corporate sector, with
the technology and resources industries leading the pack.
[]
Of the 100 companies, 59 had a 'positive' to 'very
positive' rating on their six-month outlook, its highest since
Reuters started the review in mid-2009 and up from 38 in the
December review.
"It certainly looks like we are in growth mode now and that
companies are going to have record earnings in 2010," said Todd
Martin, Hong Kong-based Asia Equity Strategist at Societe
Generale.
In Japan, analysts said that while the Nikkei could
possibly dip below its 25-day moving average, currently around
10,870, this would be brief. But rises above the key
psychological level of 11,500 were also difficult over the
short term due to a lack of strong buying factors.
The Nikkei's RSI (relative strength index) slipped to 66,
below the overbought level of 70 and above, after hitting a
high of 76 earlier this week.
Market players said expectations for earnings, widely
predicted to come in strongly, as well as increased interest in
Japanese shares as marked by rising volume, should support the
index.
Volume on the Tokyo exchange's first section rose to nearly
2.4 billion shares on Wednesday, its highest in a month.
"We've seen increasing volumes in recent days and investors
will be looking for bargains, so any falls are likely to be
limited," said Hiroichi Nishi, general manager at the equity
division of Nikko Cordial Securities.
AUSSIE DOLLAR EXTENDS GAINS
The Australian dollar firmed to about $0.9273 <AUD=D4>
after March employment data showed 19,600 jobs had been added
but stopped short of the $0.93 resistance, at which point
analysts said there were a large number of options barriers.
The jobs data was within market expectations, backing the
case for local interest rates to rise further and boosting the
yield appeal of the Aussie dollar.
Oil and gold both slipped in Asian trade. Gold <XAU=> was
at about $1,146.20 an ounce after climbing as high as $1,152.75
an ounce, its strongest since mid-January, in New York on
Wednesday on worries about Greece's fiscal problems.
London copper futures extended losses, pulling back from a
20-month high struck this week on fears a rally of nearly 10
percent over the past two weeks had run ahead of itself.
Three-month copper on the London Metal Exchange <CMCU3>
dipped to $7,885, having touched $8,005 in the previous session
and $8,010 on Tuesday, its highest since August 2008.
(Editing by Vikram S Subhedar)
