GLOBAL MARKETS-Asian shares slip, wary of buying fatigue

                                
 * Asian shares ease but off lows as Shanghai turns positive
                                
 * Nikkei drops 1.6 percent as market cautious before
election
                                
 * Yen climbs on worries that rally has overtaken recovery
                                
 By Charlotte Cooper
                                
 TOKYO, Aug 27 (Reuters) - Asian shares mostly eased on
Thursday and the yen rose after a flat day on Wall Street
following encouraging home sales and durable goods data left
investors cautious about chasing shares higher.
                                
 Shares in Japan fell 1.6 percent after the Nikkei average
hit a 10-month closing high the previous day, with exporters
losing steam and caution setting in ahead of national elections
on Sunday.
                                
 The MSCI index of Asia-Pacific shares excluding Japan
<.MIAPJ0000PUS> dropped 0.2 percent. It has lost roughly 3
percent since hitting an 11-month high earlier this month amid
investor worries that share prices have run too far ahead of
economic fundamentals.
                                
 U.S. stock futures <SPc1> also slipped 0.2 percent.
                                
 "There's a sense of buying fatigue among investors globally
and that is leading to profit-taking," said Tsuyoshi Segawa, an
equity strategist at Mizuho Securities in Japan.
                                
 "The external environment that had helped produce gains in
the market has started showing signs of waning. The U.S. market
could be entering a correction phase and the direction of
Chinese stocks remains uncertain."
                                
 Shares in Shanghai's volatile index <.SSEC> opened down
after the country's second-biggest listed property developer
China Vanke <000002.SZ> unveiled plans for a big share offer
and the regulator approved another major listing.
                                
 But by 0245 GMT the Shanghai Composite Index was 0.1
percent up on the day.
                                
 On Wednesday, orders for long-lasting U.S. manufactured
goods registered the biggest advance since July 2007, but
orders excluding transportation goods were slightly below
expectations. New home sales jumped in July to their fastest
pace in 10 months. [ID:nN26259327]
                                
 Investors on Wall Street were cautious, with shares
bouncing after the favourable data but then fizzling out.
                                
 The Dow Jones industrial average <.DJI> gained just 0.04
percent while the Standard & Poor's 500 Index <.SPX> and the
Nasdaq Composite Index <.IXIC> ended up just 0.01 percent.
                                
 In Tokyo, exporters such as digital camera maker Canon Inc
<7751.T> faced selling pressure.
                                
 Market watchers said investors have factored in a big win
by the opposition Democratic Party at the polls and focus was
shifting to what happens after the vote, including who will be
the next finance and economy ministers. [nPOLJP]
                                
 Shares in Seoul fell 0.6 percent <.KS11>, weighed down by
falls in financials such as Shinhan Financial Group
<055550.KS>.
                                
 Australian stocks began recovering after slipping early on
profit-taking and a fall in resource stocks such as Rio Tinto
<RIO.AX> and BHP Billiton <BHP.AX> as metal prices were weighed
down by news the world's top consumer, China, would take steps
to curb industrial overcapacity. [ID:nPEK157466]
                                
 New capital expenditure in Australia rose 3.3 percent on
the quarter in the second quarter, outstripping forecasts and
suggesting the economy is growing faster than expected.
[ID:nSYD439944]
                                
 Australia's benchmark S&P/ASX 200 index <.AXJO> gained 0.1
percent.
                                
 STERLING SAGS, DOLLAR DIPS
                                
 In currencies, sterling <GBP=> hit a six-week low against
the yen as the Japanese unit surged broadly on concerns that
China's plan to curb redundant investment could dent Chinese
shares.
                                
 Currencies have been monitoring Chinese shares closely in
the past few weeks as a gauge of how much the Asian giant can
help pull the world out of recession but the mood was also wary
with investors nervous a rally in riskier assets has run ahead
of itself.
                                
 The dollar fell 0.4 percent to 93.92 yen <JPY=> and the
euro also slipped 0.4 percent to 133.83 yen <EURJPY=R>,
although it was unchanged on the day at $1.4250 <EUR=>.
                                
 U.S. Treasury futures <TYv1> were steady after cash bond
prices rose in the previous session following solid demand at a
$39 billion five-year government debt auction.
                                
 Gold prices were also stable, with spot gold <XAU=> at
$945.35 per ounce, up slightly from New York's notional close
of $944.10.
                                
 U.S. crude futures <CLc1> eased but held above $71 a
barrel, after a sharp fall this week on the back of an
unexpected rise in U.S. crude inventories. [O/R]
  (Editing by Kim Coghill)