* Surprising U.S., China economic data rattle investors
* Clashes in Saudi Arabia also spur move to "safer" assets
* Oil steady after recouping most overnight losses
* China inflation data awaited
By Saikat Chatterjee
HONG KONG, March 11 (Reuters) - Asian shares fell on Friday
as weak U.S. economic data and unrest in Saudi Arabia prompted
investors to sell riskier assets, while the euro looked shaky
after its biggest one-day fall against the dollar in a month.
Increased demand for safe haven assets pushed Treasuries and
precious metals higher after Saudi police fired in the air to
disperse protesting Shi'ites, reviving fears of possible supply
disruptions from the world's top oil exporter.
Key stock indexes in Japan , Australia and
South Korea fell nearly 1 percent each following losses on
Wall Street. The broader Asian market outside Japan dipped 0.3
percent.
The main Wall Street indexes closed 1.9 percent lower,
pushing below key 50-day moving averages, a move signalling
deteriorating strength.
The mood was further soured by data showing that initial
claims for U.S. job benefits rose more than expected.
.
The weak U.S. data came after China posted an unexpected
trade deficit in February, raising questions about the economic
growth outlook and kicking metal prices, especially copper,
lower.
"It is another day of reducing risk across the portfolio. We
have had it one way for too long and with big issues hitting,
everyone is running to the exit at the same time," Chris Weston,
an institutional dealer at IG Markets said.
Investors were also wary before Chinese inflation data, due
around 0200 GMT. A high number would likely fuel fears of more
policy tightening and spell further losses for Asian currencies
particularly the Aussie and the won .
Oil was little changed in Asia as investors waited
to see if further protests would erupt in Saudi Arabia. Crude
oil fell heavily overnight but recouped most of its losses in
late trade as Saudi police fired in the air and used stun
grenades to disperse protesters calling for political reforms.
April Brent crude was off 23 cents in early trade on
Friday at $115.20 a barrel, with U.S. crude futures little
changed just below $103.
Benchmark 10-year U.S. notes yielded 3.36
percent, the lowest since Jan. 31, below a key technical price
resistance at 3.38 percent and down from 3.48 percent late
Wednesday.
In the currency market, the euro stayed on the
backfoot after having suffered its biggest one-day fall against
the dollar in a month, and further losses may loom if a euro
zone summit fails to soothe market nerves on sovereign debt.
Any disappointment could heap more pressure on the single
currency, which slid to one-week lows near $1.3770 overnight. It
last traded at $1.3798 .
(Additional reporting by Narayanan Somasundaram in SYDNEY)
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