* Clashes in Saudi Arabia spur move to "safer" assets
* Oil steady after recouping most overnight losses
* China inflation data suggest more policy tightening ahead
* Broad Asian market ex-Japan down more than 1 percent
By Saikat Chatterjee
HONG KONG, March 11 (Reuters) - Asian shares dipped on
Friday as spreading unrest in Saudi Arabia and weak economic
data spurred some profit taking while the euro looked shaky
after its biggest one-day fall versus the dollar in a month.
Key stock indexes in Japan , Australia
and South Korea fell nearly 1 percent. China's
report that inflation in February remained around the 5 percent
mark, suggesting tighter monetary policy may be needed, added to
uncertainty.
The broader Asian market outside Japan dipped about 1.1
percent.
Increased demand for safe haven assets pushed Treasuries and
precious metals higher after Saudi police fired in the air on
Thursday to disperse protesting Shi'ites, reviving fears of
possible supply disruptions from the world's top oil exporter.
Weak U.S. economic data also prompted investors to take some
profits in shares in developed markets which has enjoyed a
handsome run so far this year but some bargain buying on dips
checked losses. .
Japanese shares tumbled to a five-week low following a weak
Wall Street close. The Dow Jones industrial average
closed nearly 2 percent lower, pushing below a key 50-day moving
average, a move signalling deteriorating strength.
"It is another day of reducing risk across the portfolio. We
have had it one way for too long and with big issues hitting,
everyone is running to the exit at the same time," Chris Weston,
an institutional dealer at IG Markets said.
COPPER ROUT
Copper prices stabilised, but were
set to post a weekly drop of more than 6 percent, the biggest
since early June last year after weak Chinese trade data and
high inflation cast doubts on demand from the world's biggest
importer.
Oil was little changed in Asia as investors waited to see if
further protests would erupt in Saudi Arabia. Crude oil fell
heavily overnight but recouped most of its losses in late trade
as Saudi police fired in the air and used stun grenades to
disperse protesters calling for political reforms.
April Brent crude was off 23 cents in early trade on
Friday at $115.20 a barrel, with U.S. crude futures little
changed just below $103.
The drop in stocks lifted demand for U.S. Treasuries with
benchmark 10-year notes holding near a 1-1/2 month
low of 3.39 percent, down from 3.56 percent hit earlier this
month.
In the currency market, the euro stayed weak after
having suffered its biggest one-day fall against the dollar in a
month, and further losses may loom if a euro zone summit fails
to soothe market nerves on sovereign debt.
Any disappointment could heap more pressure on the single
currency, which slid to one-week lows near $1.3770 overnight. It
last traded at $1.3820 .
(Additional reporting by Narayanan Somasundaram in SYDNEY;
editing by Richard Borsuk)
* For Reuters Global Investing Blog, click on
http://blogs.reuters.com/globalinvesting
* For the MacroScope Blog, click on
http://blogs.reuters.com/macroscope
* For Hedge Fund Blog, click on
http://blogs.reuters.com/hedgehub
