* Asian stocks fall on EU woes, China tightening fear
* Euro struggles above four-year low vs dollar
* Yen dips after Japanese PM says to resign
* Gold eases, oil pressured by dollar strength
By Kevin Yao
SINGAPORE, June 2 (Reuters) - Asian stocks fell on
Wednesday, tracking a dip on Wall Steet, as market jitters over
the euro zone's debt crisis persisted, while the euro struggled
to stay above a four-year low against the dollar.
The yen fell broadly after Japan's Prime Minister Yukio
Hatoyama said he would resign as as Finance Minister Minister
Naoto Kan, the frontrunner to replace Hatoyama, was seen more
aggressive in fighting yen strength. []
European stocks were seen tracking losses in Asia and on
Wall Street, with financial spreadbetters expecting Britain's
FTSE 100 <> to open as much as 1.6 percent lower and
Germany's DAX <> to open as much as 1.3 percent down.
The MSCI index of Asia Pacific ex-Japan stocks
<.MIAPJ0000PUS>, which has been underperforming world equity
markets <.MIWD00000PUS> so far this year, shed 0.9 percent
after a dip in U.S. stocks [] on Tuesday as the government
launched a criminal probe into BP's oil spill in the Gulf of
Mexico.
Japan's Nikkei stock index <> fell nearly 1 percent.
Investors have in recent weeks scrambled to shed their
risky investments, including Asian stocks, as part of a flight
to safety caused by the euro-zone debt crisis, and fears are
rising that the debt crisis could undermine the fragile global
recovery.
Shanghai shares <> slipped 1.6 percent, extending
their losses for the week, as banks' fundraising plans weighed
on sentiment which also dampened Hong Kong stocks.
Bank of China, which is raising 40 billion yuan ($5.9
billion) by selling convertible bonds in Shanghai, said on
Tuesday it may consider new fundraising plans. []
Taiwan stocks <> fell just over 1 percent, with iPhone
maker Hon Hai Precision Industry <2317.TW> slumping 3 percent
after the company said it would raise wages at its Foxconn unit
in China by 30 percent, more than originally planned.
Foreign investors sold a net T$127 billion ($3.97 billion)
of Taiwan shares in May, the biggest monthly net selling since
November 2007, figures from the Taiwan stock exchange showed.
On Tuesday, they sold a net T$6.1 billion. []
YEN FALLS
The dollar gained as much as 0.9 percent to 91.78 yen
<JPY=>, its highest since May 20, after news on Hatoyama's
resignation.
"Japan's political turmoil is a factor for yen selling
especially for non-Japanese investors. But once Hatoyama's
successor is decided temporary relief will likely prompt
investors to buy back the yen to the level it was beforehand,"
said Jun Kato, senior investment manager at Shinkin Asset
Management.
"Dollar/yen is likely to move around 90-92 in the coming
few weeks."
The euro briefly hit $1.2263 <EUR=>, buoyed by its gain
against the yen. But it later pulled back to $1.2205 after
report that ECB board member Noyer said the exchange rate of
the euro against the U.S. dollar was not unusually low.
[]
The euro hit a new four-year low of $1.2110 on Tuesday
after the European Central Bank warned that euro zone banks may
face a new wave of losses.
Traders said euro selling pressure is likely to continue as
the market grows more confident that the U.S. economy and its
banking system are in much better shape than Europe's.
Oil <CLc1> fell 0.8 percent to $72 a barrel, continuing
their recent slide as the dollar rose and and Chinese and
European data raised concerns about the global economy.
Spot gold <XAU=> fell to $1,223.20 an ounce, down 0.6
percent from a two-week high hit on Tuesday after the ECB's
warnings about the threats faced by Europe's banking sector.
(Editing by XXXXXXXXX)
