(Repeats unchanged to wider readership)
By Rafael Nam
HONG KONG, April 9 (Reuters) - Asian stocks were flat and
the dollar stayed weak on Wednesday as worries resurfaced about
the U.S. economy and a global financial crisis, but some shares
gained on reports of potential deals such as Chinese interest
in a stake in BHP Billiton, the world's biggest mining company.
A week-long rally in Asian shares is seen under threat by
some analysts, after U.S. savings and loans firm Washington
Mutual Inc <WM.N> warned on Tuesday of a large quarterly loss,
while Federal Reserve minutes revived fears of a recession in
the U.S. economy.
The dollar remained weak on concerns about the U.S.
economy, slightly pushing up oil and gold prices given that a
falling U.S. currency makes the commodities more attractively
priced for buyers in other currencies.
"This has been a bit of a reality check, with recent gains
based entirely on hopes that the worst of the subprime crisis
was over," said Koichi Ogawa, chief portfolio manager at Daiwa
SB Investments in Japan.
The MSCI measure of Asian stocks outside Japan
<.MIAPJ0000PUS> was up 0.7 percent by 0220 GMT.
Asian shares had staged a promising start to the second
quarter, with the MSCI index hitting a one-month high on
Monday, though few see an end to the uncertainty about a
U.S.-led slowdown in the global economy and the financial
crisis that triggered steep losses in January-March.
Those concerns were reinforced on Wednesday following
Washington Mutual's quarterly loss warning and after minutes
from the Fed's most recent meeting showed concerns about a
nasty slide in the U.S. economy at a time of rising inflation.
[] and []
Japan's Nikkei average <> was flat, but JFE Holdings
Inc <5411.T> rose after the steelmaker announced late on
Tuesday it would join a blast furnace joint venture between
South Korea's Dongkuk Steel <001230.KS> and Brazil's Vale
<VALE5.SA>. []
Australia's main index <> fell 0.4 percent. BHP
Billiton Ltd <BHP.AX> jumped 4.5 percent after The Australian
newspaper reported that China was planning to buy a more than 9
percent stake in the world's top miner. []
But BHP's gains were offset by weaker financial firms, with
data on Wednesday showing Australian consumer sentiment has
slipped to its lowest in 15 years, providing further evidence
the economy is cooling. []
Shanghai's main index <> fell 1.1 percent, but shares
in Taiwan <> gained 0.6 percent. Singapore <.FTSTI> and
Hong Kong <> stocks were flat, and South Korean <>
markets were closed for a general election.
DOLLAR WEAK
The dollar remained weak against the yen and euro, despite
an early morning boost triggered by news that Citigroup Inc
<C.N> was close to a sale of leveraged loans to a group of
private equity firms. []
The dollar had rebounded recently on the easing worries in
global markets, though it remains significantly down against
other currencies for the year.
The U.S. currency was trading at 102.62 to the yen, little
changed from late U.S. trade, although it had risen as high as
102.84 early in the session. The euro fetched $1.5723, also
little changed from late in New York.
The weakening U.S. currency helped provide some gains to
oil prices, with investors also betting that U.S. government
data will show another fall in gasoline stocks ahead of the
coming driving season. []
U.S. crude futures for May delivery <CLc1> gained 34 cents
to $108.84 a barrel.
Gold <XAU=> edged higher, trading at $913.90/914.70 an
ounce. Prices of bullion had dropped more than 1 percent on
Tuesday as investors booked profits from recent highs.
