* Asian shares fall for 2nd day as confidence wanes
* China's trade data disappoints, but Shanghai shares gain
* Dollar, yen maintain some of gains made on Monday
(Repeats to additional subscribers with no change to text)
By Rafael Nam
HONG KONG, May 12 (Reuters) - Asian shares fell for a
second consecutive session on Tuesday as some of the confidence
that fuelled a recent rally was dampened by reports that
highlighted the weakness in the global economy.
China's exports fell a worse-than-expected 22.6 percent in
April from a year earlier, while imports fell 23.0 percent, the
official Xinhua news agency said on Tuesday. []
The trade data dampened some of the hopes for a turnaround
in the global economy that had fuelled a surge in equity
markets from their 2009 lows in early March. The dollar and yen
on Tuesday were steady a day after gaining on safe-haven
demand.
"Exports are still falling, and the future of the world
economy remains uncertain. It's really hard to be optimistic
about China's trade prospects," said Qi Jingmei, an economist
with the State Information Centre in Beijing.
"The fall in imports shows that domestic companies are not
willing to invest. We need to observe more before we can
conclude that there's a rebound in the real economy."
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> lost 1.1 percent after falling 0.6 percent on
Monday, reversing some of the gains that had sent the gauge up
some 50 percent since the yearly low hit in early March.
The debate about the outlook for the global economy is
being confounded by the mixed nature of recent reports.
Optimists pointed to a survey from the Organisation for
Economic Co-Operation and Development on Monday that noted the
pace of the decline in the world's major industrialised and
emerging economies was easing. []
Leading central bankers, including ECB President
Jean-Claude Trichet, on Monday also suggested a turning of the
corner for the global economy. []
The South Korean central bank forecast on Tuesday that the
economy would likely post mild growth in the coming months amid
signs the economic slowdown had clearly abated, after keeping
interest rates on hold as widely expected.
However, other reports have not been too rosy. Industrial
production in France and Italy dropped more sharply than
expected in March, data showed on Monday, in a bad omen for the
eurozone economy [].
Reports from China itself were also mixed, with the country
reporting on Tuesday that urban fixed-asset investment rose
slightly more than expected, helping Shanghai's <> main
index post a 0.2 percent gain. []
Shares in Hong Kong <> also gained led by a 2.3 percent
gain in HSBC <0005.HK> <HSBA.L>, which on Monday said first
quarter profits were "well ahead" of last year in a trading
update. []
With the exception of HSBC, financial shares such as
Mitsubishi UFJ Financial Group <8306.T> were among the major
decliners after a recent rally that was tracking strong gains
in U.S. banking shares.
Japan's Nikkei average <> lost 1.4 percent, with
markets in Australia <> and Taiwan <> posting
declines of 1-2 percent.
"Clearly we've had a very big run in the market and any
whiff of a turnaround will send a lot of profit-takers in,"
said Robert Hook, portfolio manager with S.G. Hiscock & Co, in
Australia.
Some of this uncertainty was reflected by the safe-haven
demand seen for the dollar and yen on Tuesday.
The dollar index, a gauge for the greenback's performance
against six other major currencies, was little changed at 82.69
<.DXY>, having rebounded throughout the previous session after
at one point touching a four-month low of 82.292.
Oil futures retreated 20 cents to $58.31 a barrel after
hitting a near six-month high of $58.75 on Friday.
