(Repeating to additional subscribers with no changes to text)
* Asian stocks slip on Fed official's deflation warning
* Dollar on defensive, eyes on U.S. GDP
* MSCI Asia ex-Japan index up 7 percent in July
* Sony shares surge as co returns to profits, boosts
outlook
By Vikram S.Subhedar
HONG KONG, July 30 (Reuters) - Asian stocks sagged on
Friday after U.S. technology companies issued glum outlooks,
and after downbeat comments from a Federal Reserve official
gave investors reason to book profits after a steady rally this
month.
The dollar remained on the defensive and was flat near a
three-month low against a basket of currencies on concerns that
second-quarter GDP data from the United States may disappoint,
adding to a raft of U.S economic data in the past month that
undershot market expectations.
Asian stocks outside Japan were lower with materials and
technology shares underperforming while consumer discretionary
shares got a boost from Sony Corp's <6758.T> robust results.
[]
The MSCI Asia ex-Japan Index <.MIAPJ0000PUS> fell half a
percent. The index is up about 7 percent this month as steady
flows into Asian funds continued through the month.
Asia ex-Japan equity funds absorbed more than $1 billion in
the week ending July 28, their biggest inflow in 14 weeks, with
China equity funds enjoying their best since mid-April,
according to data from fund tracking firm EPFR Global.
"For all the risk on/off talk, I would suggest that risk is
never off, rather it becomes more selective," said Geoff Howie,
Sales and Markets Strategist, MF Global Markets in Singapore.
"At this juncture risk is being allocated to asset markets
of economies with solid industrialisation trajectories, such as
China and ASEAN; or economies seeing policy normalization, such
as Korea."
Japan's Nikkei <> fell 1.5 percent as signs that the
U.S. recovery was faltering outweighed upbeat domestic
earnings.
"The overall U.S. economy appears to be stalling -- there's
been a wave of poor indicators and even some surprisingly
negative comments from Federal Reserve officials," said Kenichi
Hirano, operating officer at Tachibana Securities.
"With GDP coming out tonight and amid predictions it's
going to show weaker growth, the big question now is how U.S.
markets will respond, making investors wary of buying."
Economists forecast U.S. growth to slow to 2.5 percent in
the three months to June from 2.7 percent in the first quarter.
[]
St. Louis Federal Reserve bank President James Bullard said
he is worried about the risks the United States might fall into
a Japan-style quagmire of falling prices and investment,
helping push major U.S. indexes marginally lower. []
U.S. crude <CLc1> prices paused from the previous session's
strong gains and hovered at just about $78 a barrel while gold
<XAU=> edged down but trading was thing in both markets as
investors awaited the release of U.S. second quarter GDP data.
(Additional reporting by Elaine Lies in TOKYO; Editing by Jan
Dahinten)
