* Risk-takers pause after some U.S. earnings, debt
downgrades
* Focus shifts to U.S., China data on Friday
* Euro recovers after hitting 1-month low vs dollar
By Kevin Plumberg
HONG KONG, Dec 9 (Reuters) - Asian stocks slid and
government bonds mostly rose on Wednesday after U.S. corporate
news increased worries on export demand and debt rating
downgrades sent investors seeking safety ahead of the year end.
Focus was shifting to November U.S. retail sales and a
deluge of Chinese economic data due on Friday to gauge how
strong the global recovery really is.
A bigger-than-expected downward revision to Japanese
economic growth in the third quarter weighed on the Nikkei
share index <> and was a sobering reminder of how weak
demand and deflation are hounding Asia's largest economy.
"Japan's GDP data came in below expectations, and this does
give the impression that things aren't looking too good for the
economy just down the road," Noritsugu Hirakawa, a strategist
at Okasan Securities in Tokyo.
The Nikkei fell 1.1 percent, down a second day after a
blistering rally in the first week of December lifted the index
to its highest level in about five weeks.
Chip-related stocks like Tokyo Electron <8035.T> and
Advantest Corp <6857.T> fell more than 2 percent after Texas
Instruments Inc <TXN.N> did not raise the upper end of a
forecast sales range and said it was having difficulty meeting
demand owing to supply bottlenecks.
The MSCI index of Asia Pacific stocks outside Japan slipped
0.6 percent <.MIAPJ0000PUS>, with the materials sector
providing the biggest drag.
The Thomson Reuters index of Asia ex-Japan equities was
also down 0.6 percent <.TRXFLDAXPU>.
The euro recovered after a three-day decline against the
U.S. dollar, rising 0.1 percent to $1.4717 <EUR=>.
A sovereign debt rating downgrade of Greece gave dealers
enough of a reason to push the euro to a one-month low below
$1.4680, but dealers in the Asian session were quick to support
it. []
Since hitting a 15-month low on Nov. 26, the ICE Futures
U.S. dollar index <.DXY>, a measure of its value against six
other major currencies, has risen 3 percent.
Government bonds in the region rose as money flowed from
falling equity markets and investors chose safety after Moody's
cut ratings on six government-run companies in Dubai.
"The news increased nervousness surrounding Dubai, with its
credit default swaps widening, but we continue to believe that
any major problems there will be of local or regional nature
and will not shake global markets," Dariusz Kowalczyk, chief
investment strategist with SJS Markets in Hong Kong, said in a
note.
Ten-year Japanese government bond futures rose 0.2 point to
140.33 <2JGBv1>, withing striking distance of a 20-month high
reached on Dec. 1.
Ten-year Australian government bond futures was up a more
modest 0.03 point. The future has slid 0.26 point so far in
December.
U.S. crude futures rose 44 cents to $73.06 a barrel <CLc1>
after industry data showed a surprise drawdown in inventories,
after a five-session streak of losses chopped $6 off oil
prices.
(Editing by Neil Fullick)
