* Asian stocks ease as investors pause after U.S. bank plan
* Nikkei shows deeper correction as banks, exporters slump
* Japan reports record fall in exports in February
* Obama: dollar "extraordinarily strong", sign of
confidence
(Repeats to more subscribers)
By Charlotte Cooper
TOKYO, March 25 (Reuters) - Asian shares retreated from
two-month highs on Wednesday as investors paused to assess
whether a U.S. plan to deal with banks' toxic debt would revive
the financial system and help pull the economy out of
recession.
Japan's share market shed nearly 1 percent as bank stocks
such as Mitsubishi UFJ Financial Group <8306.T>, the country's
top lender, took a breather, while the yen edged up as the fall
in shares tempered appetite for higher-yielding currencies.
The dollar held steady against the euro after a steep rise
the previous day on growing expectations of lower euro zone
interest rates, and U.S. President Barack Obama said its
strength was a sign of confidence in the U.S. economy.
[]
Second thoughts about the U.S. Treasury's plan to persuade
private firms to help rid banks of up to $1 trillion in toxic
assets sent Wall Street lower on Tuesday, reversing some of the
hefty gains made on Monday when the plan was released.
Investors remain wary that large advances in stock markets
in recent weeks could quickly fizzle out amid a stream of
gloomy economic news and weaker corporate earnings as the
global recession saps consumer spending and investment.
"The enthusiasm surrounding the U.S. administration's bank
plans has been pared back slightly amidst some doubts about its
effectiveness," Calyon's global head of FX strategy, Mitul
Kotecha, wrote in a client note.
"Nonetheless, the pull back in equity markets was
relatively small in comparison to the gains registered over
recent weeks and for the most part the reaction to the plans
remains positive."
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> fell 0.4 percent after hitting its highest in
more than two months on Tuesday. It later pared its losses to
stand little changed.
The index has gained more than 27 percent from a five-year
low last November.
On Tuesday the Dow Jones industrial average <> ended
down 1.49 percent while the S&P 500 Index <.SPX> shed 2.04
percent.
S&P futures <SPc1> rose 0.3 percent in Asian trade on
Wednesday, signalling a slightly positive U.S. start later in
the day.
JAPAN TRADE SURPLUS
Japan's benchmark Nikkei <> fell 0.7 percent, after
jumping 3.3 percent the previous day to post its highest close
since Jan. 9. Exporters such as electronics giant Sony Corp
<6758.T> tumbled on expectations of weaker earnings []
"The market had entered an extremely overheated zone as of
yesterday, coupled with the fact investors lack trading factors
now that the U.S. 'bad bank' scheme has been unveiled," said
Fumiyuki Nakanishi, manager at SMBC Friend Securities.
Japan reported a record fall in exports in February, with
no signs of a demand recovery in its key U.S. and European
markets, as well as a sharp decline in imports. []
The data pointed to more pain for an economy already mired
in its worst recession since the 1974 oil shocks, showing both
domestic consumption and overseas demand were crumbling under
the weight of the global slowdown.
The yen's reaction was to the data was subdued. The euro
dipped 0.1 percent against the Japanese currency to 131.69 yen
<EURJPY=R>, after hitting a five-month high of 134.50 yen in
the previous session.
The Australian dollar fell 0.3 percent to 67.99 yen
<AUDJPY=R>, down from Tuesday's 4-
