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* Asian shares slip as U.S. consumer confidence weighs
* Aussie dlr retreats as mkt trims bets on large rate rise
* Dollar safe-haven appeal puts pressure on Asian
currencies
By Susan Fenton
HONG KONG, Oct 28 (Reuters) - Asian shares fell on
Wednesday after a dip in U.S. consumer confidence revived
worries about the pace of economic upturn, while the Australian
dollar eased as inflation data made investors reduce their
bets on an aggressive rate rise.
Conference Board's weaker-than-expected U.S. consumer
confidence index for October raised concern about the U.S.
earnings potential of Asian companies, driving shares lower
across the region. []
Japan's Nikkei index <> fell 0.7 percent as a
governent official warned the economy must try to avoid hitting
a second bottom [] and Japanese retail sales in
September fell for a 13th month. []
Shares in Honda Motor Co <7267.T>, however, surged 3.7
percent after the world's seventh-biggest carmaker surprised by
nearly tripling its annual profit forecasts on Tuesday.
[]
The Australian dollar <AUD=> first edged up and later gave
up its gains after last quarter's inflation topped forecasts,
but a steady reading of its underlying measures convinced
markets the figures were not alarming enough to warrant a 50
basis point rate rise at the central bank's next meeting on
Nov. 3. []
"This number's just not bad enough to trigger anything
other than a quarter point rate rise," said Stephen Walters,
chief economist at JP Morgan in Australia.
The Australian dollar rose to as high as $0.9208
immediately after the inflation data but then climbed down to
$0.9090.
KOREAN SHIPBUILDERS HIT
Worries about U.S. consumer confidence boosted the U.S.
dollar's safe haven appeal, putting pressure on Asian
currencies including the Korean won <KRW=>. The won hit a
one-month low at 1,195.5 per dollar, brushing off news that
South Korea's balance of payments surplus in September soared
nearly 60 percent to a near five-year high. []
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was down 1.6 percent while the Thomson Reuters
index of regional shares <.TRXFLDAXPU> was 1.1 percent lower.
Shares in Korea <> came off worst, slumping 2.2
percent as investors became nervous ahead of key earnings and
economic data this week.
Shipbuilders were hurt after the Financial Times reported
that leading German container shipper Peter Dohle Schiffahrts
was seeking aid from the German government. That pushed shares
in Hyundai Heavy Industries <009540.KS>, the world's biggest
shipbuilder, down 3.9 percent.
Investor sentiment across Asia was cautious after mixed
signals from Wall Street. The Dow Jones <.DJIA> edged up 0.14
percent on Tuesday as the consumer confidence data was partly
offset by a housing report for August showing prices rose for a
fourth straight month.
There was also some good news from Visa Inc <V.N> as the
world's largest payment network reported after the bell a
better-than-expected quarterly profit.
The oil price <CLc1> stabilised around $79.40 a barrel
after rising overnight on industry data showing a large
draw-down in U.S. crude inventories last week.
Japanese government bonds inched up with futures coming off
a two-month low after strong demand for new U.S. two-year notes
lifted U.S. Treasuries.
December JGB 10-year futures <JP2YTN=JBTC> climbed 0.04
point to 137.90 after hitting a two-month low of 138.82 on
Tuesday.
(Additional reporting by SYDNEY newsroom; editing by Tomasz
Janowski)
