* Asia stocks fall on global economy worries
* Markets trim some losses, yen slips
* US automaker help eyed; oil near 20-mth low
By Eric Burroughs
HONG KONG, Nov 12 (Reuters) - Asian shares fell for a
second day on Wednesday and oil prices slipped back near a
20-month low as poor corporate earnings highlighted the damage
from the global economic slowdown on companies and consumers.
The yen surrendered gains as the drop in Asian markets was
less than that seen on Wall Street overnight, with Japan's
Nikkei average <> dipping 0.3 percent after losing more
than 2 percent in early trade.
But investors confessed they had few reasons to be
optimistic.
"Whether it's economic indicators or company news, all of
it's just too awful," said Takashi Ushio, head of the
investment strategy division at Marusan Securities.
The MSCI benchmark index of Asian stocks outside of Japan
<.MIAPJ0000PUS> fell 0.5 percent in early trade.
On Wall Street, the S&P 500 <.SPX> shed 2.2 percent on news
of faltering demand at aluminium maker Alcoa <AA.N> and a
dismal outlook from Tyco International <TYC.N>.
Trading activity remained sluggish as many investors stuck
to the sidelines, choosing to sit out the final months of
what's been a brutal year as they try to assess how deep a
recession the global economy may be facing.
Shares in Shanghai <> and Hong Kong <> briefly
rose on hopes for more official measures to help the economy
after a batch of data showed Chinese consumer inflation slowing
to a 17-month low and import growth falling even as latest
numbers on Wednesday showed consumer spending holding up.
[]
China at the weekend launched a nearly $600 billion economic
stimulus package aimed at infrastructure spending, a move that
gave a fleeting boost to equities and investor confidence
earlier in the week.
Analysts said a slowdown in Chinese import growth suggested
domestic investment was slowing more quickly than demand for
its goods, raising worries about a deeper economic slowdown
despite the record trade surplus posted last month.
The troubles in the United States cast a shadow on the rest
of the world. Shares of General Motors <GM.N> slid to a 65-year
low of just $2.92 on mounting worries about whether it can
avoid bankruptcy.
U.S. automaker woes have prompted Congress to consider
emergency aid that could be passed as soon as next week.
[]
Traders said the prospect of near-term assistance to U.S.
automakers helped left S&P 500 futures <SPc1> 11 points, or 1.3
percent, in Asia trade.
The yen gave up initial gains as stocks trimmed losses, but
traders said any further slide in major indexes would help the
yen push back towards last month's 13-year peak hit against the
dollar.
The dollar was up slightly at 97.72 yen <JPY=> compared
with 97.66 yen in late U.S. trade, while the euro climbed to
122.72 yen <EURJPY=R> from near 122.30. The dollar index
<.DXY>, a gauge of its performance against six major
currencies, dipped 0.1 percent to 86.970.
The yen tends to trade closely with stocks due to its role
in the carry trade -- borrowing the low-yielding Japanese
currency to buy higher-yielding currencies or other assets.
But the stock market losses in Asia and on Wall Street the
previous day gave a lift to safe-haven Treasuries, which traded
again after U.S. bond markets took a break for the Veterans Day
holiday on Tuesday.
The benchmark 10-year Treasury note <US10YT=RR> gained 8/32
in price to yield 3.728 percent, down about 3 basis points from
Monday's close.
A deteriorating global economic outlook has also cast doubt
about demand for commodities, driving oil and metal prices
down.
U.S. crude oil <CLc1> dipped 8 cents a barrel to $59.25
after falling as far as $58.32 the previous day, the lowest
since March 2007 and down more than $80 from record peaks hit
in July.
(Additional reporting by Elaine Lies in Tokyo, Editing by
Dhara Ranasinghe)
