CORRECTED - CORRECTED-GLOBAL MARKETS-Oil prices, global econ worries hit Asi

                                
 * Oil prices rise, above $126 a barrel
                                
 * Asian stocks hit on inflation and global growth worries
                                
 * Gold gains, benefits from safe-haven appeal
 (Corrects to read European Central Bank is expected to keep
interest rates on hold at its meeting on Thursday, not raise
them)
                                
 By Rafael Nam
                                
 HONG KONG, Aug 4 (Reuters) - Asian stocks fell on Monday as
a rebound in oil prices to above $126 revived inflation
concerns at a time when major economies such as the United
States and Japan are already seen headed for tough times.
                                
 A steep quarterly loss at U.S auto maker General Motors
Corp <GM.N> and a contraction in U.S jobs announced on Friday
spell trouble for Asian manufacturers which rely heavily on
U.S. demand.
                                
 The dollar dipped against the yen but held near Friday's
five-week high against the euro as investors sold other major
currencies amid mounting evidence that the U.S. credit and
housing woes are spreading to other parts of the world.
                                
 Gold regained its safe-haven appeal to rise on Monday,
though regional bonds dipped ahead of a slew of central bank
policy meetings this week including in South Korea, Australia
and the United States.
                                
 The confluence of negative factors are pointing to a
continued period of market volatility, analysts said.
                                
 "The still-high oil price, slowing growth virtually
everywhere, profit downgrades, inflation worries and the
continuing credit crunch are all big short-term headwinds for
shares and are likely to ensure a rough ride," said Shane
Oliver, head of investment strategy and chief economist at AMP
Capital Investors in Sydney.
                                
 The MSCI index of Asian stocks outside Japan
<.MIAPJ0000PUS> was down 0.8 percent at 0230 GMT.
                                
 South Korean stocks suffered a steep fall, with the KOSPI
<.KS11> index down 2.3 percent after a recent batch of
cancelled orders sent shipbuilder shares such as Daewoo
Shipbuilding and Marine Engineering <042660.KS> plunging.
                                
 Shares in Shanghai <.SSEC>, Singapore <.FTSTI> and Hong
Kong <.HSI> were all down around 1 percent, while benchmark
stock indices in Australia <.AXJO> and Taiwan <.TWII> were
little changed.
                                
 Tokyo's Nikkei index <.N225> fell 1 percent as Japanese
auto makers Honda Motor <7267.T> and Toyota Motor <7203.T>
slipped on worries about reduced U.S. demand for their
vehicles. Honda fell more than 5 percent, while Toyota fell
nearly 4 percent.
                                
 U.S. RECESSION?
                                
 Concerns about a possible U.S. recession were reinforced by
data on Friday showing the unemployment rate hit its highest in
four years in July, as employers cut jobs for a seventh
consecutive month, though less severely than expected.
[ID:nN01429062

                                
 U.S. corporate profits are being hit, with General Motors
reporting a $15.5 billion quarterly loss on Friday, while data
showed U.S. auto sales plunged to a 16-year low in July.
[ID:nN01288721] and [ID:nN01496226]
                                
 Slowing demand from the world's largest economy is taking a
toll on the global economy. Data due to be released later this
week is expected to show Japan's economy probably shrank 0.6
percent in the second quarter, ending three consecutive
quarters of expansion. [ID:nT205687]
                                
 Adding to global growth woes was a rebound in the price of
oil as concerns over Iran's nuclear activities, violence in
OPEC member Nigeria and a tropical storm in the Gulf of Mexico
sparked concerns over supply. Oil had tumbled last month on
concerns that record prices were dampening energy demand.
                                
 U.S. light crude for September deliver <CLc1> was up $1.13
at $126.23, still below the record above $147 a barrel hit on
July 11.
                                
 How to respond to rising inflationary pressures and slowing
economic growth is shaping up as a key debate for central banks
around the world.
                                
 The Federal Reserve meets on Tuesday amid expectations it
will keep U.S. interest rates steady at 2 percent, while
acknowledging financial conditions remain strained and
reiterating concerns about inflation. [ID:nN03323846]
                                
 The European Central bank is also expected to keep interest
rates on hold on Thursday as it weighs inflation trends and
slowing growth.
                                
 The dollar dipped to 107.56 yen <JPY=>, down 0.1 percent
from late U.S. trade last week, but was little changed against
the euro at $1.5574 <EUR=>.
                                
 The worsening outlook for auto makers dented the appeal of
metals such as platinum <XPT=>, with spot prices falling to
$1,617.50 an ounce, its lowest level since late January.
                                
 But gold <XAU=> rebounded on Monday to $913.25/914.25 an
ounce as investors sought a safe haven.
                                
 Regional bonds, however, fell ahead of central banks
meetings. Japan's September 10-year JGB futures <2JGBv1> was
down 0.13 point at 136.59 ahead of a key auction on Tuesday.