* Oil rises more than 6 pct in week on Russia tensions
* Measures of risk taking stablise
* Asian stocks' bear market could be nearing end - HSBC
(Updates prices, adds European outlook)
By Kevin Plumberg
HONG KONG, Aug 22 (Reuters) - Asian stocks fell to a
two-year low on Friday, down for a fourth straight week, after
a surge in oil prices above $121 enflamed inflation worries and
the spiralling financial crisis showed no signs of ending.
European stock index futures <STXEc1> <FDXc1> rose, with
commodity stocks likely to benefit from strong metal and crude
prices.
Crude prices have gained more than 6 percent this week on
escalating tensions between the United States and Russia, the
world's second-largest oil exporter. Russia's military
intervention in Georgia has disrupted crude transit and
supported prices.
A rise in commodity prices cut a two-week rally in the U.S.
dollar short, though analysts said the currency's 1.3 percent
decline this week was understandable given its stellar recently
and that an upward trend is still intact.
Investors' anxieties about the financial sector remain
unsoothed. Freddie Mac <FRE.N>, one of the top U.S. mortgage
finance companies, is talking with private-equity and other
investors about buying some shares but faces fears that a
government bailout would wipe out any investment, The Wall
Street Journal said. []
Japan's Nikkei share average <> fell 0.7 percent to
12,666.04, its lowest close in nearly five months, as exporters
such as Honda Motor Co <7267.T> declined on a stronger yen.
"The trading environment is worse than yesterday as the yen
became stronger after yesterday's close and oil prices rose
sharply," said Yoshinori Nagano, chief strategist at Daiwa
Asset Management.
"Lingering worries about the global economy, including
Japan, are also weighing on the market."
The MSCI pan-Asia stocks index <.MIAS00000PUS> was down 0.8
percent, after hitting a two-year low in early trade. The
Asia-Pacific ex-Japan index edged up 0.2 percent but lost
nearly 3.0 percent on the week.
South Korea's KOSPI <> shed 1.0 percent to a 16-month
low, with shares of the country's top commercial lender,
Kookmin Bank <060000.KS> leading the index lower with a 6
percent fall.
HongKong's markets were shut because of a typhoon.
MARKETS BOTTOMING OUT?
Some analysts said markets in Asia were getting closer to a
bottom, assuming that the U.S. recession began when regional
markets peaked in November 2007.
"We think the start of the recession will be pinned down to
November last year -- which means that, as long as this is just
a normal cyclical recession, the bottom for stocks could come
very soon," said Garry Evans, Asia-Pacific equity strategist
with HSBC in Hong Kong.
Over the last 50 years, U.S. recessions lasted between six
and 16 months. U.S. stocks on average bottomed four months
before the economy would level out and Asia stocks about a
month later, Evans said in a research note.
However, for now institutional investors are shying away
from putting their money in any country dependent on exports,
particularly commodity exports.
Cross-border monthly equity capital flows into Japan and
Mexico are near record lows, according to State Street Global
Markets, which tracks 15 percent of the world's tradeable
assets.
Meanwhile, flows into the United States recovered slightly
in the last few months.
The euro fell 0.2 percent to $1.4880 <EUR=> recovering from
a a six-month low of $1.4630 touched on Tuesday.
Against the yen, the dollar climbed 0.5 percent to 108.95
yen <JPY=>.
Gold rose to $836.45/837.45 an ounce <XAU=> in the spot
market, near Thursday's 1-
