* Asia shares ex-Japan down, mirror U.S. caution
* Dollar steady after Fed comments
* Gold bounces back to $1,010 an ounce
By Susan Fenton
HONG KONG, Sept 24 (Reuters) - Asian shares outside Japan
fell on Thursday, mirroring investor caution in the United
States, while the dollar was steady after the Fed reiterated
interest rates would stay low for a long period.
Japan's benchmark Nikkei index <> jumped 1.7 percent
after a three-day holiday break, but the rise reflected gains
made in the rest of the region at the start of the week.
A 0.8 percent slide in the Dow Jones <> on Wednesday,
however, weighed on the rest of Asia's markets and the MSCI
index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> was down 1.2 percent.
Shares in Korea fell more than 1 percent with some concern
that a strengthening Korean won <KRW=> could hurt export
competitiveness.
In Hong Kong, the Hang Seng Index <> shed 2 percent and
new listing Metallurgical Corp of China <1618.HK>, a Chinese
engineering company and the market's biggest IPO so far this
year, skidded nearly 15 percent below its issue price. Analysts
said its price had been too high given an expected slowdown in
investment in China's steel industry.
The dollar was up 0.4 percent against a basket of
currencies <.DXY>, reflecting reasonably calm reaction after
the Fed upgraded its view of the U.S. economy and indicated it
was closer to pulling back on extraordinary stimulus measures
while also reiterating a pledge to keep rates very low for a
long period. []
However, traders said its commitment to loose monetary
policy means the dollar could come under renewed pressure soon
as it is used to fund carry trades.
"As things stand, the Fed is in absolutely no hurry to even
think about normalising policy," said Stephen Stanley, chief
economist at RBS in Greenwich, Connecticut. "This remains a
very dovish Fed."
SONY SURGES, JAL PLUNGES
Japan outperformed otherwise weak Asian share markets,
although data showing a slump in Japanese exports last month
was a further indication that economic recovery will be shaky.
[]
Electronics maker Sony Corp <6758.T> surged 3.3 percent
after the company said sales of the PlayStation 3 video game
console jumped after a price cut last month [],
but Japan Airlines <9205.T> plunged 11.1 percent after sources
said the struggling carrier might be broken up and public
broadcaster NHK reported the airline may seek a public
bail-out. [][]
Markets will be eying a two-day G20 summit in Pittsburgh
starting on Thursday for further clues on the health of the
global economy and when governments might start rolling back
support measures for economic growth.
Japanese and Korean government bonds followed U.S.
Treasuries higher on the Fed's dovish stance although gains in
Japanese treasuries were capped by a rising equity market.
December 10-year Japanese government bond futures <2JGBv1>
rose 0.13 point to 138.68.
Gold <XAU=> bounced back to around $1,010 an ounce, after
sliding to a New York close at $1,007.05. It has been supported
by underlying weakness in the U.S. dollar and is now about 1
percent off an 18-month high reached last Thursday at
$1,023.85.
Oil prices <CLc1> remained weak though, sliding 0.5 percent
to $68.61 after shedding nearly 4 percent on Wednesday after a
jump in stockpiles raised concerns about the strength of
demand.
(Additional reporting by Wayne Cole in Sydney; editing by
Jeremy Laurence)
