GLOBAL MARKETS-Asian shares fall, wary of buying fatigue

                                
 * Asian shares ease on worries rally has run out of gas
                                
 * Nikkei drops 1.6 percent as market cautious before
election
                                
 * Yen climbs on worry that risk rally has overtaken
recovery
                                
 By Charlotte Cooper
                                
 TOKYO, Aug 27 (Reuters) - Asian shares fell on Thursday and
the yen rose after Wall Street largely shrugged off encouraging
U.S. home sales and durable goods data, leaving investors wary
about chasing shares higher.
                                
 European shares were set to open little changed, with
financial spreadbetters expecting Britain's FTSE 100 <.FTSE> to
open flat, Germany's DAX <.GDAXI> to open flat and France's CAC
<.FCHI> to open as much as 0.1 percent or 4 points lower.
[ID:nLR361547]
                                
 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 0.8 percent. It has lost roughly 3
percent since hitting an 11-month high earlier this month amid
investor worries that surging share prices have run too far
ahead of economic fundamentals and may be due for a reversal.
                                
 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 China's benchmark stock index <.SSEC> fell 1
percent after a big share offer announced by the country's
second-biggest listed property developer China Vanke
<000002.SZ> kept the focus on a hefty supply of new shares in
the near future.
                                
 On Wednesday, orders for long-lasting U.S. manufactured
goods registered the biggest advance since July 2007, but
orders excluding transport goods were slightly below
expectations. New home sales jumped in July by 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. [.N]
                                
 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 in Sunday's election and the
focus is shifting to what happens after the vote, including who
will be the next finance and economy ministers. [nPOLJP]
                                
 Australian shares dipped 0.1 percent <.AXJO>, even in the
wake of data showing that new capital expenditure in Australia
rose 3.3 percent in April-June from the previous quarter,
outstripping forecasts and suggesting the economy is growing
faster than expected. [ID:nSYD468294]
                                
 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.
                                
 "It seems like the daily moves of 1 yen or 2 you see in the
market now are being driven by short-term speculative money,"
said Toru Tanaka, senior manager of treasury and foreign
exchange at Mitsubishi Corp.
                                
 Currency market players 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 0.6 percent to 93.65 yen <JPY=> and the
euro also slipped 0.7 percent to 133.34 yen <EURJPY=R>. Against
the dollar, the euro dipped 0.1 percent to $1.4237 <EUR=>.
                                
 U.S. Treasury futures <TYv1> edged higher 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
$944.20 per ounce, up slightly from New York's notional close
of $944.10.
                                
 U.S. crude futures <CLc1> eased and hovered near $71 a
barrel, after a sharp fall this week on the back of an
unexpected rise in U.S. crude inventories. [O/R]
 (Additional reporting by Masayuki Kitano)
 (Editing by Kim Coghill)