GLOBAL MARKETS-Stocks fall on credit worry; wheat hits record

                                
 By Tom Miles
                                
 HONG KONG, Feb 11 (Reuters) - Asian shares fell 2 percent
on Monday on concerns that a global slowdown will curb spending
and hit company profits, while investors piled into oil,
precious metals and wheat, sending that commodity to a record
high.
                                
 Markets in Japan and China and Taiwan remained closed for
public holidays but shares in Seoul, Australia and Hong Kong
fell around 2 percent as concerns grew over the global
economy's health.
                                
 At the weekend G7 meetings in Tokyo, the top nations'
finance leaders warned that the credit turmoil could unhinge
the world economy. [ID:nT262281]
                                
 Financial bookmakers in London expect Britain's FTSE 100
<.FTSE> index to open between 42 and 46 points lower, the
German DAX <.GDAXI> 34 to 38 points lower and the French CAC 40
<.FCHI> 34 to 38 points lower.
                                
 Sentiment is likely to be depressed by news that Societe
Generale <SOGN.PA>, the French bank reeling from a record rogue
trading scandal, launched a rights issue at a steep discount
and also announced 600 million euros in fresh write-downs.
[ID:nL11635532]
                                
 RUNAWAY WHEAT
                                
 The price of wheat <WH8>, the top performing commodity of
2007, jumped to a fresh record high, climbing the maximum 60
cents to $11.53 a bushel as investors piled into commodities
they think will withstand a global economic slowdown.
                                
"We haven't seen this sort of price action in 25-30 years.
People will pay anything to get it," said agricultural
commodities broking consultant Colin Lethbridge.
                                
 Options trading indicated Chicago wheat prices could go
through $15 a bushel, he said.
                                
 Uncertainties in the dollar's outlook amid the turmoil in
credit markets and volatile stock markets have also encouraged
investors to buy platinum as well as gold, silver and
palladium.
                                
 Platinum <XPT=> hit a record high at $1,887 an ounce and
sister metal palladium raced to a six month high after power
shortages disrupted mining in major producer South Africa.
                                
 "Gold might hit $1,000 and platinum might hit $2,000 by the
end of the first quarter," said William Kwan, a dealer at
Phillip Futures in Singapore. "It may be short lived after all
the frenzy, and they will retrace back," he added.
                                
 INDIAN JUMBO IPO SINKS
                                
 In Mumbai, India's largest ever initial public offering,
Reliance Power <RPOL.BO>, was launched into a turbulent market
and promptly sank more than 13 percent. By 0619 GMT, the
utility, which sold $3 billion in stock within a minute last
month, had recovered but was still down 6.7 percent.
                                
 "This is not surprising because the global market scenario
has affected this IPO, which is its latest casualty," said
Jigar Shah at KIM ENG Securities India Private Ltd.
                                
 The 30-share BSE index <.BSESN> was down almost 3.5
percent. MSCI's measure of Asia Pacific stocks excluding Japan
<.MIAPJ0000PUS> was down 1.9 percent by 0225 GMT.
                                
 Australian shares <.AXJO> lost 2.1 percent, with banks such
as National Australia Bank Ltd <NAB.AX> falling after the
Reserve Bank of Australia signalled further rate hikes were on
the way.
                                
 Seoul stocks <.KS11> dropped 3.3 percent, catching up with
a slide in global markets during last week's holiday.
                                
 The dollar held steady after a weekend Group of Seven
meeting acknowledged growing risks to the world economy and
kept comments on currencies almost unchanged from the October
statement.
                                
 The euro <EUR=> inched up against the dollar and the yen
<JPY=> after European Central Bank President Jean-Claude
Trichet warned the market not to bet on a cut in interest rates
because of persistent inflation pressures in the euro zone.
                                
 Oil prices <CLc1> edged up to $91.95 a barrel by 0635 GMT
to cemented Friday's 4 percent rally, their biggest gain in
nearly two months, as production problems in the North Sea and
Nigeria pushed aside fears of slowing U.S. demand.
                                
 Venezuelan President Hugo Chavez on Sunday threatened to
stop sending oil to the United States on Sunday after Exxon
Mobil <XOM.N> froze $12 billion of Venezuela's overseas oil
assets as it pushes for compensation for a nationalised oil
project.
                                
 "If you freeze us, if you really manage to freeze us, if
you damage us, then we will hurt you. Do you know how? We are
not going to send oil to the United States, Mr. Bush, Mr.
Danger," Chavez said on his weekly TV show. [ID:nN10578755]
  (Additional reporting by Hiral Vora in MUMBAI, Lewa Pardomuan
in SINGAPORE; Rhee So-eui in SEOUL, Michael Byrnes, Fayen Wong
and Denny Thomas in SYDNEY, editing by Louise Heavens)