GLOBAL MARKETS-Nikkei leads Asia up, China falls on policy worry

                                
 * Nikkei hits 15-month high, leading Asian stocks higher
                                
 * China, Hong Kong stocks wobble on policy tightening fears
                                
 * Concerns about China tightening also weigh on oil, gold
                                
 * Investors wary ahead of U.S. jobs data
                                
 By Kevin Yao
                                
 SINGAPORE, Jan 8 (Reuters) - Japanese stocks hit a 15-month
high on Friday as the yen eased against the dollar, leading
most Asian markets higher, but Chinese shares and commodities
stumbled on fears that Beijing is ready to tighten policy to
cool economic growth.
                                
 European equities were set to edge higher, with financial
spreadbetters expecting Britain's FTSE 100 <.FTSE> to open as
much as 0.3 percent higher, and Germany's DAX <.GDAXI> and
France's CAC-40 <.FCHI> seen up as much as 0.4 percent.
                                
 Investors were cautious, however, ahead of all-important
U.S. non-farm payroll data later in the day (1330 GMT). The
report is expected to show the world's largest economy stopped
shedding jobs last month for the first time since it fell into
recession two years ago. [ID:nN0747110]
                                
 Expectations that the job report will point to an improving
U.S. economy have helped lift the dollar to a four-month high
against the yen.
                                
 Japan's Nikkei average rose 1.1 percent, with exporters
such as Honda Motor Co <7267.T> buoyed by expectations that yen
weakness will make their products more competitive, while
memory chip-related stocks climbed on growing global demand for
high-tech products. Honda shares jumped 3 percent.
                                
 "Shares of exporters will likely continue to fare well for
a while, helped by the weakening yen," said Kenichi Hirano,
operating officer at Tachibana Securities.
                                
 The MSCI index of Asia Pacific stocks outside Japan edged
up 0.3 percent <.MIAPJ0000PUS> but was still off its 17-month
highs hit earlier this week.
                                
  A similar Thomson Reuters index <.TRXFLDAXPU> rose nearly
0.6 percent.
                                
 However, fears that Beijing may be getting ready to use
more forceful measures to fight inflation hurt investor
sentiment in China and Hong Kong.
                                
 The central bank surprised markets on Thursday by raising
the interest rate on its three-month bills for the first time
since August.
                                
 The Shanghai Composite Index <.SSEC> fell as much as 1
percent at one point before ending the day little changed. The
index fell nearly 2 percent on Thursday, its biggest daily
percentage drop in two weeks, after the central bank's move.
                                
 Hong Kong's Hang Seng index <.HSI> was down 0.2 percent at
midday on worries that China will rein in bank lending and
property purchases to prevent possible asset bubbles from
forming.
                                
 Commodity prices extended losses from Thursday as traders
feared policy tightening would curb China's enormous appetite
for resources from metals to crude oil. [ID:nTOE60604H]
                                
 Shanghai copper prices <SCFc3> fell 1 percent and zinc
futures <SZNc3> tumbled their 5 percent daily limit.
                                
 Spot gold <XAU=> shed almost 0.9 percent to $1,121.60 per
ounce. Bullion prices had climbed 4 percent in the first three
trading sessions of 2010 to a three-week.
                                
 Crude oil for February delivery <CLc1> was down 40 cents,
or 0.5 percent, to $82.26 a barrel, falling further from a
15-month high hit on Wednesday.
                                
 DOLLAR FIRM ON ECONOMY, RATE EXPECTATIONS
                                
 The dollar hit a fourth-month high against the yen <JPY=>
on expectations for an upbeat U.S. jobs report, but briefly
gave up some of its gains after new Japanese Finance Minister
Naoto Kan said markets should decide exchange rates.
[ID:nTOE6060AU]
                                
 Kan said on Thursday he wanted the yen to weaken to help
the country's exporters, raising the possibility of
intervention by Japanese authorities and sparking a sell-off in
the currency.
                                
The dollar edged up 0.1 percent to 77.977 against a basket
of six major currencies <.DXY> <=USD>.
                                
 The U.S. dollar also got help from U.S. regulators urging
banks to protect themselves against hikes in interest rates,
supporting views that the Federal Reserves will start raising
interest rates this year. [ID:nN07206622]
                                
 A strong jobs report would fuel speculation that the
Federal Reserve could start tightening policy and perhaps even
raise interest rates sooner than expected. [FED/R]
                                
 Global investors are increasingly focused on when central
banks will unwind emergency growth-stimulus measures put in
place during the global financial crisis. Withdrawing them too
soon could undermine still fragile economic recoveries, while
leaving them in place too long could trigger inflation and
potentially sow the seeds of another crisis.
                                
 Central banks in South Korea, India and the Philippines
have all talked explicitly this week about exit strategies as
their economies improve.
 (Editing by Kim Coghill)