RPT-GLOBAL MARKETS-Asian shares hit by US consumer concerns

                                
 (repeats to additional subscribers with no change to text)
                                
 * Asian shares fall on U.S. econ concerns, but shippers
surge
                                
 * Euro steady ahead of ECB, sterling dips ahead of BOE
                                
 * Oil dips, gold little changed
                                
 By Rafael Nam
                                
 HONG KONG, Feb 5 (Reuters) - Asian shares fell on Thursday
reversing two previous sessions of gains on fears about how far
U.S. consumers will cut spending, while the euro steadied and
sterling dipped ahead of meetings by their respective central
banks.
                                
 Glum profit forecasts on Wednesday from U.S. food makers
and warehouse club Costco <COST.O> added to the uncertainty
about reduced consumer spending in a key market for Asian
exporters.
                                
 Kraft <KFT.N> and Sara Lee Corp <SLE.N> cut their profit
forecasts for the year while Costco Wholesale Corp warned
quarterly earnings would be well below Wall Street estimates as
sales at stores open at least a year fell 2.0 percent in
January.
                                
 Another report from the Institute for Supply Management
showed that while the U.S. service sector contracted at a less
severe rate in January than the previous month the jobs outlook
remained grim. [ID:nN04279497]
                                
 Regional bonds edged higher, reflecting the mood of
caution, but analysts said some signs of hope remained, largely
bolstered by recovery hopes for China.
                                
 "Uncertainty about the United States, especially about the
government's 'bad bank' plan, is weighing on the market," said
Noritsugu Hirakawa, a strategist at Okasan Securities.
                                
 "But the fact that China-related shares like shippers and
steel are up on hopes for additional Chinese economic steps
shows that sentiment isn't entirely gloomy, and market
direction could change."
                                
 The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> fell 0.5 percent as of 0230 GMT, reversing the
prior two days of gains. Japan's Nikkei average <.N225> fell
0.8 percent.
                                
 Indexes in South Korea <.KS11>, Australia <.AXJO> and
Taiwan <.TWII> posted modest losses, but markets in Shanghai
<.SSEC>, Hong Kong <.HSI> and Singapore <.FTSTI> advanced.
                                
 Oil prices dipped, though gold remained steady.
                                
 Asian shippers such as Japan's Mitsui O.S.K. Lines
<9104.T>. bucked the early trend rising sharply on a surge in a
key indicator of dry bulk shipments.
                                
 The Baltic Dry Index <.BADI>, which measures changes in the
cost of shipping commodities, surged more than 14.6 percent on
Wednesday, on signs of recovering demand for raw materials in
China.
                                
 POLICYMAKERS REACT
                                
 A steep decline in economic growth worldwide is being
countered by government plans that combine increased spending,
reduced taxes and rescues of banks or even industrial sectors.
                                
 Central banks are also cutting rates steeply. The Bank of
England on Thursday was expected to cut already record low
interest rates by at least another 50 basis points to 1
percent. [ID:nL4635617]
                                
 The European Central Bank is expected to keep its rates on
hold at 2 percent after four months of cuts, but markets are
looking for signs of further stops to shore up the euro zone
economy. [ID:nL4667657]
                                
 The euro held steady from late U.S. trading at $1.2828
<EUR=>, after falling more than 1.4 percent on Wednesday. Those
declines had been sparked after Fitch became the second credit
ratings agency within two months to downgrade Russia's ratings.
                                
 Against the Japanese currency, the euro dipped 0.1 percent
to 114.69 yen <EURJPY=R>, while the dollar eased 0.1 percent to
89.42 yen <JPY=>.
                                
 Oil prices <.CLc1> fell 17 cents to $40.15 a barrel,
tracking the decline in global equity markets and hit by a
report showing a larger-than-expected buildup in U.S. crude
inventories.
                                
 Gold <XAU=> edged down after rising in New York on safe
haven buying. Gold was trading at $903.55 an ounce. Prices of
bullion could reach $1,000 an ounce in the next three months
due to its safe-haven appeal, Goldman Sachs said in a report,
boosting its forecast from its prior call at $700 an ounce.
[ID:nSP46226]
                                
 But regional bonds, another asset that gains from safety
bids, edged higher. Japanese government bond March futures rose
0.12 point to 138.47 <2JGBv1> after on Wednesday falling as low
as 138.28, the lowest since mid-November.