* Nikkei down 2 percent after yen hits 15-year high
* Bank worries push euro to record lows vs Swiss franc, A$
* Retreat from risk boosts gold, hits oil
(Repeats item to more subscribers)
By Alex Richardson
SINGAPORE, Sept 8 (Reuters) - Asian stocks fell on
Wednesday, with Japan's big exporters among the heaviest losers
as a rise in the yen to a new 15-year high threatens to erode
their oversees earnings.
The euro was on the defensive after renewed fears about the
euro zone banking system drove it to life lows against the
Swiss franc and Australian dollar, hitting financial stocks and
dragging equity markets in Europe and the United States lower.
"It's the same old ugly contest -- which currency is the
least unattractive," said a dealer at a local bank in Sydney.
Japan's Nikkei <> fell 2 percent, with the electric
equipment, retail trade and motor vehicle sectors the biggest
drags on the index.
Exporters Honda Motor <7267.T> fell 2.9 percent and
chip-tester maker Advantest <6857.T> lost 4.2 percent as the
yen traded at 83.66, just off a 15-year high hit on Tuesday of
83.51. []
"The dollar falling below 84 yen has completely neutralised
any positive impetus from the jump in machinery orders," said
Masayoshi Okamoto, head of dealing at Jujiya Securities.
MSCI's broadest index of Asian shares outside Japan
<.MIAPJ0000PUS> eased 0.4 percent.
EURO WORRIES
Worries about Europe's banks resurfaced on Tuesday, when
the Wall Street Journal reported that some major lenders had
understated holdings in potentially risky government debt
during "stress tests" designed to test their ability to weather
crises.
Ireland added to the jittery mood, extending its guarantees
for short-term bank liabilities amid fears over the escalating
cost of bailing out nationalised lender Anglo Irish [].
[]
The euro was pinned at $1.2690 <EUR=>, having dived from
$1.2876 on Tuesday and a three-week high of $1.2920 the day
before.
Traders were now looking for a test of support around
$1.2625, though they were not keen to go long of the U.S.
currency either given concerns about the country's faltering
economic recovery. []
The dollar hit a fresh 15-year trough of 83.51 yen <JPY=>
before talk of "semi-official" bids and option protection at
83.50 helped it edge up to 83.74.
Analysts at BNY Mellon, who track investor flows in and out
of currencies, reported net outflows from the euro and the U.S.
dollar.
Wall Street stocks were almost as unpopular as sovereign
bonds from the hard pressed euro zone "periphery" such as
Greece and Ireland.
"Investors clearly remain concerned about the sovereign
debt burden of a number of peripheral euro zone nations and, as
a result, are still keen to reduce their exposure to the euro
as a result," BNY Mellon said in a note.
"On the other hand, they also have little faith in the
outlook for the U.S. economy and are reducing their exposure
steadily."
A broad retreat from riskier assets boosted gold and dented
oil, with spot gold <XAU=> rising more than $3.50 to $1,256.60
while U.S. crude eased 0.5 percent to below $74 a barrel.
[] []
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