* MSCI Asia exJapan stock index drops 0.7 pct, earnings
eyed
* Shanghai equities down 1.4 pct on property curb concerns
* European markets more resilient, open higher
* Investors looking to regain exposure to China
property-poll
* Australia dollar, Korea won dragged down as risk sold
(Repeats to more subscribers)
By Kevin Plumberg
HONG KONG, July 13 (Reuters) - Asian shares surrendered
early gains on Tuesday, weighed down by Chinese stocks, which
slid on reports that Beijing will not relax tougher property
measures any time soon.
Major European stocks <>, however, opened slightly
higher after Alcoa <AA.N>, the largest U.S. aluminum producer,
posted surprisingly strong quarterly results and provided a
positive outlook for global consumption of the metal.
[]
The euro steadied after dropping from two-month highs as
investors awaited Greece's return to capital markets for the
first time since late April and the results of stress tests on
euro zone banks next week. []
But the tone was weaker in Asia, where the focus for much
of the session was on China's volatile stock market.
China's banking regulator left few doubts that efforts to
rein in real estate speculation will remain in place despite
media reports of easing restrictions in some cities. That
helped to trigger some profit taking in Asian stocks after
three days of gains. []
"The view that the Chinese will not ease restrictions on
property took away from sentiment some, and markets had been up
for a few days, so there's a bit of a correction," Lorraine
Tan, director of research, Asia for Standard & Poor's in
Singapore, said.
"It was a reminder of risks."
The MSCI ex-Japan share index <.MIAPJ0000PUS> fell 0.7
percent by mid-afternoon after an initial move higher.
The Shanghai composite index <> fell 1.6 percent,
bringing its year-to-date losses to 25 percent, the poorest
performing equity market in Asia.
Hong Kong's Hang Seng index <> slipped 0.2 percent,
with strength in financial stocks offset by weakness in
utilities and energy shares, which sagged as oil prices
retreated further from $75 a barrel.
Despite concerns that Beijing will maintain its curbs on
property speculation, bargain hunters have their eyes peeled
for opportunities in Chinese property-related stocks.
A survey of investors by Macquarie Securities showed that
while 78 percent of respondents expected property prices to
fall by the end of March 2011, the real estate industry was the
top pick of where investors said they would increase exposure
in the next six months.
"In addition to being the most cited sector for H2
accumulation, property is even more favoured than in our
(bullishly toned) November 2009 survey, when a majority of
respondents still expected property prices to continue rising,"
analysts at the bank said in a report.
Japan's Nikkei share average <> slipped 0.1 percent,
also surrendering early gains. It has had difficulty rising
above its 25-day moving average, a technical gauge used by
domestic investors.
Though Alcoa's results beat Wall Street's expectations,
many investors anticipate that earnings forecasts will be
revised downward given expectations for slowing economic
activity in the United States and China.
The U.S. results season officially started on Monday, with
the focus now on quarterly reports from JPMorgan <JPM.N> on
Thursday and General Electric <GE.N> on Friday.
"Although there's a sense of selling fatigue, investor
sentiment is still bearish, and the market is looking for a
catalyst. Corporate earnings could be one," said Naoki Koga, a
senior fund manager at Toyota Asset Management in Tokyo.
SOUTHEAST ASIA BULLS
Despite the reversal in major Asian bourses, Southeast Asia
remains a bright spot among the region's equity markets.
Indonesia, the Philippines and Thailand were No 2, 3 and 4
in terms of performance so far this year. The benchmark index
for the Philippines <> was at the highest in 2-
