GLOBAL MARKETS-Nikkei tripped up by weak data, bonds supported

                                
 By Rika Otsuka
                                
 TOKYO, Feb 8 (Reuters) - Japanese shares fell on Friday
after weaker-than-expected machinery orders data stoked concern
over the strength of the economy, while Australia's stock
market rose as the cheap valuations of battered banks lured
investors back to the sector.
                                
 Japanese government bonds (JGBs) were supported by the
steeper-than-expected drop in core Japanese machinery orders,
which cast doubt on capital spending. Earlier JGBs fell,
tracking a fall in U.S. Treasuries overnight on poor demand for
an auction of 30-year notes.
                                
 The dollar was fairly steady against the euro and the yen.
All eyes are on the weekend meeting of Group of Seven finance
ministers in Tokyo.
                                
 Platinum prices <XPT=> hovered near their record of $1,850
an ounce hit the previous day, while oil stayed above $88 a
barrel on forecasts for colder weather in the northeastern U.S.
                                
 Japan's benchmark Nikkei stock index <.N225> was down 0.8
percent by the midsession as investors sold industrial robot
maker Fanuc Ltd <6954.T> following the weak machinery orders
[ID:nT207019]
                                
 Australian shares <.AXJO> rose 0.9 percent as investors
returned to banks such as Commonwealth Bank of Australia
<CBA.AZ> following overnight gains in U.S. stocks. On Thursday
the Dow Jones industrial average <.DJI> added 0.4 percent,
while the Nasdaq Composite Index <.IXIC> rose 0.6 percent.
                                
 Trading activity in Asia was subdued due to the Lunar New
Year holidays in most of the region, with markets in China,
Hong Kong, South Korea, Taiwan, Singapore, Malaysia and
Indonesia closed until next week.
                                
 On the positive side, Japan Tobacco Inc <2914.T> and
Mitsumi Electric Co Ltd <6767.T> were strong gainers among
Tokyo stocks as investors turned to companies with solid
earnings in the face of a darkening economic outlook.
                                
 "Shares have come down to a level that attracts bargain
hunters, but investors are inclined to sell ahead of the
weekend," said Yoku Ihara, manager of the investment
information department as Retela Crea Securities.
                                
 Japanese financial markets will be closed on Monday for a
national holiday.
                                
 The dollar <JPY=> dipped a touch against the yen to 107.35
yen from around 107.50 yen in late U.S. trade. The euro <EUR=>
was steady around $1.4485.
                                
 In Australia, ResMed Inc <RMD.AX> sank 7 percent to a
three-month low after the sleep breathing device maker reported
a 7 percent fall in second-quarter profit as costs rose.
                                
 Japan's broader TOPIX index <.TOPX> fell 0.9 percent.
                                
 In the Japanese government bond market the benchmark
10-year yield <JP10YTN=JBTC> was up 1 basis point at 1.435
percent.
                                
 U.S. crude oil for March delivery <CLc1> rose 51 cents at
$88.62 a barrel on the Globex electronic trading platform.
                                
 Oil prices were supported by forecasts for colder weather
in the giant heating oil market of the northeastern U.S.
                                
 Gold <XAU=> held near $910 an ounce after Thursday's news
that producers were reducing their hedge books.