* Shares fall ahead of key U.S. earnings
* Euro awaits Greece's 1.2 bln euros bill sale
* ADB recommends "careful capital controls" in Asia
By Raju Gopalakrishnan
SINGAPORE, April 13 (Reuters) - Asian shares fell on
Tuesday ahead of key earnings in the United States while the
euro consolidated ahead of a Treasury bill sale by Greece later
in the day.
The Nikkei <> fell as much as 1.09 percent, moving
further away from 18-month highs hit last week, as the yen
strengthened and investors took profits in chipmakers ahead of
earnings from tech bellwether Intel Corp <INTC.O> later in the
day. []
"Though good earnings are expected, these predictions are
factored in, so that anything except a large positive surprise
could lead to selling once the results are out," said Takashi
Ushio, head of the investment strategy division at Marusan
Securities.
The Nikkei's relative strength index (RSI) has fallen as
low as 59 after rising to a high of 76 last week. Anything from
70 and above is considered overbought.
Some longer-term indicators such as MACD have turned
bearish, with the MACD line now breaking below the signal line,
a move seen as a sell signal.
But sharp falls are not expected, with support likely to
hold for now near the Nikkei's 25-day moving average, currently
at just under 11,000. The index was last at 11,141.30, down
0.98 percent.
The yen advanced on the dollar and the euro, setting off
light selling of exporters as well.
The dollar slipped about 0.5 percent against the yen,
hovering around 92.8 yen <JPY=>.
Honda Motor Co <7267.T> lost 1.07 percent to 3,250 yen and
Sony Corp <6758.T> slipped 1.45 percent to 3,365 yen.
The MSCI index of Asian shares outside Japan
<.MIAPJ0000PUS> was down 0.34 percent.
On forex markets, the euro's <EUR=> rally appeared to be
short-lived as it hovered around $1.3588, broadly steady from
late in New York on Monday, and well below a high of $1.3691
struck in the previous session.
It had jumped after euro zone finance ministers approved a
30 billion euro ($40.5 billion) rescue package of loans, which
Greece could tap if needed. At least 10 billion euros are also
expected from the International Monetary Fund. []
Traders had expected the unwinding of euro short positions
to support the single currency in the near term, but in the
longer term many felt that the bailout package was not a
game-changer and the currency would head lower in the next few
months.
But a trader at a European bank said the single currency
could test $1.37 later the day if a proposed 1.2 billion euros
sale of Greek Treasury paper draws a good response.
[]
ADB RECOMMENDS CAPITAL CONTROLS
The Asian Development Bank said China's maintenance of
limited flexibility in the yuan meant other Asian countries
were unlikely to allow their currencies to strengthen.
"To resolve the dilemma, policy coordination among
developing Asian countries should be initiated," it said in its
annual Asian Development Outlook. []
"More flexible exchange rate systems are in the region's
own interest, and carefully designed capital controls that
mitigate disruptive capital inflows may be desirable during the
transition to greater flexibility, at least in the short run."
U.S. President Barack Obama met Chinese President Hu Jintao
in Washington on Monday and called for more flexibility in the
yuan. The Xinhua news agency later quoted Hu as telling Obama
that Beijing would "firmly stick" to its own path on the yuan.
[]
On metals markets, London's three-month copper futures
<CMCU3> fell more than half a percent, extending losses after
the market failed to hold on to a rally to a 20-month peak in
the previous session on worries that growth in prices have
outpaced demand. []
U.S. crude futures <CLc1> fell for the fifth straight day,
edging toward $84, ahead of data due later in the day that is
expected to show a build in U.S. crude stockpiles. []
Spot gold <XAU=> was little changed after a round of
physical selling pulled down the precious metal from a
four-month high the previous day. []
(Editing by Bill Tarrant)
