* Asian stocks up slightly, but remain under pressure
* Dollar edges off four-month lows
* Gold remains high as investors seek safe haven assets
By Sugita Katyal
SINGAPORE, March 8 (Reuters) - U.S. oil futures eased from a
two-and-a-half year high and the euro stalled on Tuesday, while
Asian stocks remained under pressure as investors fretted that
higher energy prices would stunt the global economic recovery.
U.S. crude eased almost 50 cents, or 0.5 percent, to
just under $105 a barrel, as traders assessed efforts to stem
fighting in Libya that threatens to spiral into civil war.
A rally in the euro ran out of steam as investors who had
been betting against the dollar took profits.
Market players have been focused on the prospect of a
European Central Bank interest rate rise as early as next month,
but the euro zone debt crisis returned to the fore on Monday,
when Moody's slashed Greece's sovereign rating by three notches.
The euro struggled to make much headway in Asia after its
rally stalled just above $1.40 overnight, helping an oversold
dollar edge off four-month lows against a basket of major
currencies.
The euro traded around $1.3965, down from a high of
around $1.4036 on Monday, while the dollar index was
steady around 76.517.
"We are still USD bears, but the scale of speculative market
net shorts in the USD is significant," said Peter Frank,
strategist at Societe Generale.
"With the aggregate net short at $39.5 billion, surpassing
even the pre-Lehman 2007 peak, the USD could benefit from
profit-taking in the near-term."
Japan's Nikkei benchmark edged higher as investors covered
short positions after selling heavily on Monday, but analysts
said gains may be limited as concerns about turmoil in the
Middle East and oil prices persist.
"The market's fundamentals are recovering on corporate
earnings so sentiment for the longer term is good. But for the
short-term, the market may see some correction due to continuing
worries about develoments in the Middle East," said Hajime
Nakajima, deputy general manager at Cosmo Securities.
Japan's Nikkei rose 0.38 percent and Hong Kong's
Hang Seng Index was up 0.24 percent helped by a broadly
stronger energy sector and gains in Chinese large caps.
Seoul shares were up 0.96 percent after sharp falls
in the previous session, lifted by shipbuilders and technology
plays.
After an early fall, MSCI's index of Asia Pacific shares
outside Japan was up 0.28 percent helped by
gains in energy and industrials.
"It will be difficult for risk markets such as equities and
industrial commodities to push into higher ranges whilst the
threat to oil supplies remains elevated," said Ric Spooner,
chief market analyst at CMC Markets in Australia.
U.S. stocks fell on Monday, with the S&P 500 down 0.8
percent and the Nasdaq off 1.4 percent.
The prospects of further unrest in oil-rich Middle Eastern
countries has driven investors to seek safe-haven assets. Spot
gold traded around $1,432.30 an ounce, down a little from
a record $1,444.40 scaled on Monday.
(Additional writing by Alex Richardson; Editing by Nick Macfie)
