RPT-GLOBAL MARKETS-Asia shares fall on credit, economy fears

                                
 (Repeats to additional subscribers with no change to text)
 (Updates with European outlook, latest Asian prices)
                                
 By Rafael Nam
                                
 HONG KONG, April 9 (Reuters) - Asian stocks fell on
Wednesday as financial shares were hit by reignited concerns
about credit-related losses after U.S. savings and loans bank
Washington Mutual said it expects a large quarterly loss.
                                
 The warning was seen by analysts as a reminder that the
global financial crisis continues to take its toll, and could
sour a recent rally in Asian shares by raising tensions ahead
of results from Merrill Lynch <MER.N> and Citigroup <C.N> next
week.
                                
 European shares were set to open lower, with financial
bookmakers calling Britain's FTSE 100 index <.FTSE>, France's
CAC 40 <.FCHI> and Germany's DAX <.GDAXI> all down about 0.2
percent.
                                
 A weakening U.S. economy is also looming large again, with
the dollar remaining under pressure after minutes from the
Federal Reserve's most recent meeting showed concerns about a
slide in the U.S. economy at a time of rising inflation.
[ID:nN08375266]
                                
 "Those that say that the all banks have bottomed already
actually don't look at the bad debts cycle which runs for a
long period of time," said Neale Goldston-Morris, head of
equity strategy at Macquarie Equities in Sydney.
                                
 "The banks are going to run into continuous earnings
downgrades for about another 12 months or so."
                                
 The MSCI measure of Asian stocks outside Japan
<.MIAPJ0000PUS> fell 0.6 percent by 0550 GMT, erasing earlier
modest gains to post losses for a second day in a row.
                                
 Asian shares had staged a promising start to the month,
with the MSCI index hitting a one-month high on Monday, but few
see an end to the uncertainty in the global economy and the
financial crisis that triggered steep losses in the first
quarter.
                                
 Credit-worries were revived after Washington Mutual (WaMu)
<WM.N>, which has been battered by mortgage delinquencies and
defaults, said Tuesday it projected a $1.1 billion quarterly
loss. [ID:nN08346729]
                                
 WaMu's announcement comes as turmoil in credit markets
continues to spread, with the International Monetary Fund
forecasting on Tuesday total losses could approach $1 trillion.
[ID:nN08343900]
                                
 "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.
                                
 DEAL REPORT LIFTS BHP
                                
 Japan's Nikkei average <.N225> fell 1.2 percent led by
exporters such as Honda Motor Co Ltd <7267.T> as well as
financials such as Nomura Holdings Inc. <8604.T>
                                
 "Even if you suppose the worst is over for financials, the
worst time for the economy and corporate earnings is still to
come," said Soichiro Monji, chief strategist of the equity
management department at Daiwa SB Investments.
                                
 Australia's main index <.AXJO> fell 0.9 percent, hit
further after data on Wednesday showed consumer sentiment
slipped to its lowest in 15 years. [ID:nSYU004202]
                                
 But BHP Billiton Ltd <BHP.AX> rose 3.6 percent after The
Australian newspaper reported that China may buy a more than 9
percent stake in the world's top miner. [ID:nSYD7386]
                                
 Shanghai's main index <.SSEC> fell 2.4 percent, while
shares in Taiwan <.TWII>, Singapore <.FTSTI> and Hong Kong
<.HSI> fell less than 1 percent each.
                                
 Seoul <.KS11> markets were closed for a general election.
                                
 DOLLAR WEAK
                                
 The dollar remained weak on concerns over the U.S. economy,
while the sterling hit a record low versus the euro on bets the
Bank of England will cut interest rates this week.
                                
 The U.S. currency fell 0.2 percent to 102.36 yen <JPY=>,
while the euro fetched $1.5705, flat from late U.S. trade. The
euro hit a record high against sterling <EURGBP=>for a second
consecutive day, rising as high as 79.94 pence.
                                
 The weakening U.S. currency helped oil prices, with
investors also betting that U.S. government data will show
another fall in gasoline stocks ahead of the coming driving
season. [EIA/S]
                                
 U.S. crude futures for May delivery <CLc1> gained 9 cents
to $108.59 a barrel.
                                
 Gold <XAU=> remained range-bound at $910.30/911.10 an
ounce. Prices of bullion dropped more than 1 percent on Tuesday
as investors booked profits from recent highs.
 (Editing by Lincoln Feast)