GLOBAL MARKETS-Asian stocks dive although euro edges up

                                
 * Euro zone worries, market volatility push Asia stocks
down
                                
 * European markets also seen opening lower
                                
 * Euro edges higher, but long-term concerns persist
                                
 * Nikkei sinks to five-month low
                                
 By Raju Gopalakrishnan
                                
 SINGAPORE, May 21 (Reuters) - Asian stock markets slid on
Friday as worries about the euro zone and the flare-up in
market volatility prompted investors to sell shares and keep
cash until calm returns.
                                
 European shares were seen opening lower as well. Financial
spreadbetters expected Britain's FTSE 100 <.FTSE> to open as
much as 1.1 percent lower, Germany's DAX <.GDAXI> as much as
0.8 percent down and France's CAC-40 <.FCHI> 1.1 percent
weaker. [nLDE64K02E]
                                
 Trading was choppy in foreign exchange markets as the euro
bounced back against the dollar on short-covering and the
Australian dollar recovered from 10-month lows on talk of
central bank intervention.
                                
 "Investors are shifting toward cash as you can see from
such moves as investors were even selling gold yesterday," said
Masaru Hamasaki, a senior strategist at Toyota Asset
Management.
                                
 "There's uncertainty over the extent of the fallout from
the crisis, such as whether it would end up leading to a halt
in financial trades like after the Lehman shock."
                                
 In Asian trade, the euro <EUR=> firmed to $1.2590 from
$1.2507 late in New York on Thursday. It got a boost on
Thursday, helped by its gains versus the Swiss franc and
speculation European monetary officials might intervene to prop
up the single currency. [ID:nTOE64K023]
                                
 On the year, however, the euro is down about 12 percent
against the dollar. Despite the latest rebound, sentiment on
the currency remains decidedly negative, with investors
concerned about a seeming lack of unity among euro zone leaders
in addressing the debt crisis.
                                
 Japan's Nikkei average <.N225> fell as much as 3.2 percent
to 9,696.63, a five-month low, but recovered slightly to close
2.5 percent down. The index has lost over 6.5 percent since the
start of the week, when renewed worries about the euro zone
began. [.T]
                                
 The MSCI index of Asia-Pacific shares outside of Japan
<.MIAPJ0000PUS> fell 0.4 percent to an eight-month low.
                                
 The Australian dollar <AUD=D4> bounced to $0.8288 from
10-month lows of $0.8075 and jumped 3.1 percent against the yen
to 74.11 yen <AUDJPY=R> after talk of central bank intervention
sparked short-covering. The currency had fallen 3 percent
against the dollar on Thursday.
                                
 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
                                
 For Insider video on the Aussie dollar, click on
                                
 http://link.reuters.com/qum55k
                                
 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
                                
 Spot gold prices <XAU=> fell to a two-week low to $1165.50
an ounce as investors remained nervous about the turmoil on
financial markets, but later recovered to $1,178.15. Spot
platinum fell more than 3 percent. [nTOE64K02A]
                                
 U.S. crude futures fell below $70 a barrel on fears that
crude demand could suffer because of Europe's debt crisis.
NYMEX crude for July delivery <CLc1> was down almost 1 percent
at $69.90 a barrel by 0210 GMT but then recovered to $70.30.
[nSGE6440E5]
 (Editing by Kazunori Takada)