GLOBAL MARKETS-Asia shares fall, dollar gives up early gains

                                
 * Asia shares fall, resources companies hit by weak oil
price
                                
 * Dollar gives up early gains
                                
 * India shares trim losses after c.bank keeps rates on hold
                                
 * Korea govt bonds rebound as minister dampens rate rise
talk
                                
 By Susan Fenton
                                
 HONG KONG, Oct 27 (Reuters) - Asian shares fell on Tuesday
as investors worried that an eventual withdrawal of economic
support measures could undermine global recovery while the
dollar gave up early gains as short-covering receded.
                                
 The euro <EUR=> recovered to $1.4904 by 0630 GMT after
sliding to $1.4850 in early trade, but it still well below a
14-month high of $1.5064 hit on Monday.
                                
 U.S. equity futures <SPc1> were flat.
                                
 Japan's Nikkei index <.N225> dropped 1.5 percent and market
sentiment across Asia was subdued after Wall Street fell.
                                
 "Japanese earnings for the first half have been better than
expected so far, but the fact the market remains susceptible to
falls in overseas markets shows that investors still lack
confidence about the outlook for the economic recovery," said
Mitsuo Shimizu, deputy general manager at Cosmo Securities.
                                
 Shares in Mitsubishi Corp <8058.T> skidded 5.5 percent as
trading houses were hurt by lower oil and commodity prices in
the past day.
                                
 Oil <CLc1> was at $78.78, below $79 a barrel for a fourth
day, amid concerns that a sluggish global economic recovery
will limit fuel demand. It hit $82, its highest level in a year
last Wednesday.
                                
 Speculation is growing that governments and central banks
of some major economies may eventually withdrawal of stimulus
measures that has been a key factor in driving a global
recovery.
                                
 The benchmark 10-year U.S. Treasury yield hit a two-month
high on Monday, partly due to expectations the Federal Reserve
may drop or modify its commitment to keeping rates low for an
"extended period" at next week's meeting.
                                
 RISK AVERSION
                                
 Investor concern that global economic recovery could be
slow weighed on markets and encouraged profit taking in some
riskier assets, including the Korean won <KRW=> and the
Philippine peso <PHP=>, which hit a one-month low at 47.30 to
the dollar.
                                
 The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was 1 percent lower while the Thomson Reuters
index of regional shares <.TRXFLDAXPU> was down 1.4 percent.
                                
 Shanghai shares <.SSEC> ended 2.8 percent lower, the
biggest one-day low in five weeks.
                                
 India's main share index <.BSESN> was down 0.5 percent by
0553 GMT, trimming losses after the central bank held interest
rates but began the first phase of its exit from expansionary
policy by ending some liquidity support measures.
[ID:nBAY002155]
                                
 However, with the world economy recovering and Asian
interest rates likely to rise before U.S. rates, analysts
expect underlying weakness in the dollar to persist and the oil
price to recover.
                                
 "While the U.S. dollar strengthened overnight, we do not
think this will be a trend," said Song Kyung-keun, an analyst
at Dongbu Securities in Seoul. "To what extent the won and
crude prices strengthen are two key uncertainties."
                                
 Against a basket of major currencies, the dollar <.DXY>
dipped 0.3 percent, giving up early gains.
                                
 In Australia, shares dropped 1.6 percent with mining giants
BHP Billiton <BHP.AX> and Rio Tinto <RIO.AX> down 2.2 percent.
and
                                
 ASIAN EARNINGS
                                
 Shares in China's leading Internet search company Baidu Inc
<BIDU.O> plunged nearly 13 percent after hours in New York
after it warned that the transition to a new advertising
technology would crimp revenue this quarter. [ID:n26209688]
                                
 The Asian earnings picture generally though continues to
improve. Shares of Japanese electronics conglomerate Hitachi
Ltd <6501.T> rose 2.3 percent on Tuesday after the company cut
its annual net loss forecast by 15 percent, citing a recovery
in emerging markets, government spending and cost cuts.
                                
 Shares in China Life Insurance Co <2628.HK>, the world's
top life insurer by market value, rose 2 percent in Hong Kong
after the Chinese company's third-quarter earnings more than
doubled. [ID:nPEK296325]. India's No. 3 software services
exporter Wipro Ltd <WIPR.BO> said its order book had increased
and it saw a strong second half to the fiscal year
[ID:nBMA006232], sending its shares up 3.2 percent.
                                
 South Korean government bond prices rebounded as investors
went bargain hunting after a recent selloff after a vice
finance ministers' cautioned against an early rise in interest
rates. [ID:nSEO292203]
                                
 The benchmark five-year treasury bond yield <KR5YT=KSDA>
fell 2 basis points to 5.08 percent.
 (Additional reporting by Jungyoun Park in SEOUL and Aiko
Hayashi in TOKYO; Editing by Kazunori Takada)