* Stocks fall. JPMorgan loan losses highlight consumer
fears
* U.S. consumers remain wary in face of high unemployment
* Euro weighed down by Greece deficit woes
* Yen, dollar firm as risky trades unwound
By Umesh Desai
HONG KONG, Jan 18 (Reuters) - Asian stocks fell on Monday
after No 2 U.S. bank JPMorgan reported heavy losses on mortgage
and credit card loans which cast doubt on consumer demand in
the region's largest export market.
The U.S. dollar and the yen firmed as investors unwound
riskier trades, while the euro remained under pressure, hurt by
concerns about fiscal problems buffeting Greece, which has seen
its budget deficit balloon and its credit ratings cut.
Euro zone finance ministers had little patience left for
Greece after it misled them about the size of its deficit and
would be ready to impose sanctions on Athens if needed, euro
zone sources said. []
U.S. stocks fell by around 1 percent on Friday as
JPMorgan's <JPM.N> results raised concerns about profits at
banks and on data showing American consumer sentiment was
weaker-than-expected, which followed a poor retail sales report
earlier in the week. []
"If your main export market is not going to see a
consumer-led recovery led recovery this time, that is quite
negative for Asia," said Andrew Sullivan, a sales trader with
broker MainFirst Securities in Hong Kong.
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> fell 0.38 percent, with sectors like consumer
staples and materials leading the decline.
The Thomson Reuters index of regional shares <.TRXFLDAXPU>
was down 0.57 percent.
Japan's Nikkei average fell 1.83 percent, coming off a
15-month high struck last week, with bank shares leading
declines over fears the market's recent rally was over done.
"JPMorgan's earnings dragged down other U.S. banking
shares, and Japanese peers may follow suit, but on the whole,
the bank's earnings helped lead to profit-taking as there were
concerns that those shares had already gone up too high," said
Hiroichi Nishi, general manager of equity marketing at Nikko
Cordial Securities.
Hong Kong <> and Shanghai <> shares remained under
pressure after a Chinese regulator asked banks to be cautious
over lending strategies this year. Fears that Beijing is moving
to curb credit growth to avoid inflation and economic
overheating rattled shares in China and the rest of Asia last
week. []
Traders say a raft of Chinese data this week, ranging from
fourth-quarter gross domestic product to December retail sales
and industrial production could give clues on whether domestic
consumption in China is helping to offset persistent weakness
in U.S. demand.
WORRIES OVER GREECE SPARK EXITS FROM RISKY TRADES
The euro slid to a four-month low against sterling as the
British currency gained ground on the dollar and the yen
following a rise in UK house prices and as the euro continued
to be weighed down by concerns about Greece's fiscal woes.
The euro fell as far as 88.03 pence <EURGBP=D4>, its lowest
since mid-September, down 0.5 percent on the day
"The risk reward (for the euro) is skewed towards further
negativity on the news front as Greece struggles to convince
the markets of its three-year plan to reduce the fiscal deficit
and maintain a steady hand going forward," Westpac said in a
note.
The U.S. dollar and the yen were firm while currencies
leveraged to global growth like the Australian dollar ran into
a bout of profit-taking after an impressive run up since the
start of the new year.
The U.S. dollar was little changed at 90.77 yen <JPY=>,
while the Aussie <AUD=D4> was down at $0.9188 from $0.9223 late
in New York on Friday..
But sentiment is expected to be cautious with U.S.
financial markets closed on Monday for the Martin Luther King
day holiday.
Investors will also be closely watching further U.S.
earnings this week, with the financial sector in focus, traders
said.
Bank of America <BAC.N> and Morgan Stanley <MS.N> should
report on Wednesday and Goldman Sachs <GS.N> is expected on
Thursday. Tech companies such as IBM <IBM.N> and Google Inc
<GOOG.0> are also expected this week. [] []
Oil prices tumbled, extending losses for a sixth session to
below $78 a barrel, after the International Energy Agency cut
its view on 2010 global oil demand growth.
(Additional reporting by Aiko Hayashi in TOKYO)
(Editing by Kim Coghill)
