GLOBAL MARKETS-Asia stocks mixed but Greater China climbs

                                
 * CNOOC, China Mobile results awaited as Hong Kong index up
                                
 * MSCI global stocks index at near two-year low
                                
 * Oil rises above $116 as hurricane threatens Gulf of
Mexico
                                
 By Kevin Plumberg
                                
 HONG KONG, Aug 27 (Reuters) - Asian stock markets were
mixed on Wednesday, with exporter shares down as the U.S. and
euro zone economies sputtered though investors found some value
in companies dependent on domestic growth.
                                
 Greater China stocks edged higher while markets in Japan,
South Korea and Singapore all dipped, though losses were
modest.
                                
 Oil prices ticked higher above $116 a barrel, supported by
fears Hurricane Gustav, which could strengthen substantially,
would rip through crude and natural gas assets in the Gulf of
Mexico. Though prices are about $30 below record highs reached
a month ago, oil is a constant reminder of corporate Asia's
vulnerability to cost pressures.
                                
 The U.S. dollar slipped after hitting a six-month high
against the euro on Tuesday, with dealers closing out of
short-term bets on the dollar after the currency did not extend
gains in Asia.
                                
 Reports overnight generally reflected differing degrees of
weakness -- certainly not recovery -- in Europe and the United
States, with sentiment on German business activity at a
three-year low and U.S. new home sales that were lower than
expected but up from the prior month.
                                
 Big exporter stocks like Honda Motor Co <7267.T> and
Samsung Electronics <005930.KS> weighed on their respective
indexes.
                                
 Japan's Nikkei share average <.N225> was down 0.4 percent,
creeping back down toward a five-month low touched on Friday.
                                
 "There are some news relevant for specific stocks but we
don't see any new factors to impact the overall market, either
positive or negative," said Fumiyuki Nakanishi, head of
investment information department at SMBC Friend Securities in
Tokyo.
                                
 Outside Japan, stocks in the Asia-Pacific region
<.MIAPJ0000PUS> were largely unchanged though within sight of a
17-month low hit last week Thursday, according to an MSCI
index.
                                
 Australia's benchmark S&P/ASX 200 index <.AXJO> ticked 0.2
percent lower, with shares of the country's top banks the
biggest drag.
                                
 A BEIJING BOOST?
                                
 Hong Kong's Hang Seng index rose 0.9 percent, boosted by
shares of offshore oil producer CNOOC <0883.HK>, which is set
to report its first-half results later.
                                
 Index heavyweight China Mobile Ltd <0941.HK> is also
expected to issue its results for the half.
                                
 Stocks listed on the Shanghai composite index <.SSEC>
recovered slightly after Tuesday's 2.6 percent drop, but remain
down 52 percent so far this year, earning the dubious
distinction of worst performing equity market in the world.
                                
 The Chinese stock market has been locked in downward
spiral, weighed partly by expectations for slowing growth but
also by investor unease about a massive amount of previously
untraded company shares that are scheduled to turn public and
greatly increase the total floating market capitalisation.
                                
 Donald Straszheim, a long-time China analyst, said in a
note to clients the Chinese government will likely step in to
help the market because of its penchant for intervention.
                                
 "The most likely course is for Beijing to create yet
another mechanism that limits the unlocking for a few more
years. It will need to be several years or it will not be
sufficiently protective of current investors to lift sentiment
on a sustained basis," said Straszheim, vice chairman of Roth
Capital Partners in Los Angeles.
                                
 Global stock markets are also locked in a downward trend
and hit a near two-year low on Tuesday, according to the MSCI
all-country world index <.MIWD00000PUS>. However, there are
reasons for cautious optimism.
                                
 Short interest, essentially bets on falling asset prices,
dipped on the Nasdaq and New York Stock Exchange in the first
half of August, suggesting investors may think the worst of the
market downturn may be over. In particular, investors cut short
positions in financial shares, and increased their bets against
some Canadian resources stocks. [ID:nN26384812]
                                
 The euro <EUR=> rose 0.3 percent to $1.4690, bouncing up
from an overnight low of around $1.4570. The dollar slipped 0.3
percent against the yen to 109.30 yen <JPY=>, off more than a
yen from a seven-month high around 110.66 yen reached two weeks
ago.
                                
 U.S. light crude edged up 58 cents to $116.85 a barrel
<CLc1>, having now recovered about $5 from a three month low
plumbed on August 15.
  (Editing by Lincoln Feast)