GLOBAL MARKETS-Asia stocks at 1-1/2-mth low with earnings poor

                                
 * Samsung posts first quarterly loss, leads tech sector
lower
                                
 * Policies weigh on long-maturity government bonds
                                
 * Cash is still king among fund managers-Merrill Lynch
survey
                                
 * Dollar boosted by safe-haven appeal, Geithner comments
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 By Kevin Plumberg
                                
 HONG KONG, Jan 23 (Reuters) - Asian stocks fell to a
1-1/2-month low on Friday, weighed by poor corporate results in
the technology sector, while the U.S. dollar drifted higher as
investors sought refuge from the deteriorating global economy.
                                
 Government bond markets were caught in a tug-of-war, with
mid-maturities in demand on expectations for more economic
pain, while long-dated U.S. Treasuries were sold in
anticipation of a flood of new issuance. The five-year Japanese
government bond yield plumbed three-year lows.
                                
 Oil prices slipped to $43 a barrel as a buildup in U.S.
inventories reflected a lack of energy demand from strugging
consumers and businesses.
                                
 Samsung Electronics <005930.KS> chalked up its first ever
quarterly loss on Friday, following stark warnings from tech
giants like Microsoft, Nokia and Sony, as consumers pull back
severely on their spending on gadgets in the face of recessions
in Britain, Europe, Japan and the United States. [ID:nSP130079]
                                
 The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> fell 1.4 percent to the lowest since December
8.
                                
 Japan's Nikkei share average <.N225> was down 2.6 percent
after earlier in the session hitting a two-month low. Shares of
Sony Corp <6758.T> dropped 6 percent after saying on Thursday
it would post a record $2.9 billion loss.
                                
 "With Sony the way it is, it's easy to imagine how other
electronics makers are faring. On top of that, many companies
haven't yet priced in the recent strength in the yen into their
earnings forecasts," said Fumiyuki Nakanishi, manager at SMBC
Friend Securities in Tokyo.
                                
 Hong Kong's Hang Seng index <.HSI> was one of the relative
outperformers in the region, slipping only 0.9 percent in early
trade. Shares in HSBC <0005.HK> stayed just in positive
territory, though oil-related shares were a drag.
                                
 By and large, fund managers globally remain defensively
positioned, with heavy allocations for cash, according to a
January survey of money managers conducted by Merrill Lynch.
The poll showed a slight trimming in underweight positions in
equities, to 28 percent from 34 percent, and in overweight bond
positions to 11 percent from 22 percent.
                                
 However, cash is still king. Cash positions in Europe
climbed to the highest since 2001, with 42 percent of
respondents there saying they are overweight cash compared with
29 percent in December.
                                
 Investors are talking a more positive story, especially
with regards to the U.S., but the fear factor remains, said
Gary Baker, Banc of America Securities-Merrill Lynch Head of
EMEA Equity Strategy.
                                
 "They have firepower to act, but are unconvinced by the
modest recent equity rally, suggesting it is a bear market
rally in both sentiment and markets," he said in a report.
                                
 Fear also was driving demand for U.S. dollars. The euro
edged up 0.1 percent to $1.2991 <EUR=> and the dollar was at
89.14 yen <JPY=>, up 0.3 percent on the day though close to
Wednesday's 13-year low of 87.10 yen.
                                
 U.S. Treasury Secretary nominee Timothy Geithner said a
strong U.S. currency was in the national interest, repeating a
mantra held since the Clinton administration in the 1990s and
giving investors a sense of stability.
                                
 In the bond market, the five-year Japanese government bond
yield slipped 1 basis point to 0.665 percent <JP5YTN=JBTC>, its
lowest since September 2005 after the central bank said the
economy would likely shrink in the next two fiscal years and
anticipated a period of falling prices.
                                
 Longer-dated U.S. Treasuries have been sliding on growing
fears that a rising tide of government debt issuance could
swamp the market. The yield on the benchmark 10-year note
<US10YT=RR>, which moves in the opposite direction of the
price, was currently stable at 2.605 percent.
                                
 U.S. crude futures for March deliver <CLc1> were down 76
cents to $42.92 a barrel but was well off a four-year low of
$32.40 touched last month.
 (Additional reporting by Aiko Hayashi in TOKYO; Editing by
Lincoln Feast)