* Nikkei falls 1.5 pct on worries over radiation leaks
* Euro steadies after ECB's Trichet remarks on inflation
* Gold flat on euro, oil slides again despite Libyan turmoil
By Richard Leong
HONG KONG, March 29 (Reuters) - Japanese shares fell on
Tuesday as workers struggled to contain the world's worst
nuclear crisis in decades, while the euro steadied after
comments from the European Central Bank's chief bolstered the
view that it would raise interest rates soon.
Plutonium found in soil at the earthquake-stricken Fukushima
nuclear plant added to anxiety over Japan's protracted fight to
prevent further radiation leaks. []
Heightening the uncertainty for investors, some Japanese
companies said there would be delays in reporting full-year
financial results as they assessed the damage from the
devastating quake and tsunami which hit the country's northeast
on March 11, and the impact of widespread power outages which
are still preventing many firms from restarting production
lines. []
Shortages of key components made in Japan have forced some
manufacturers, particularly auto makers, to cut back production
in North America, Europe and parts of Asia.
Japan's Nikkei fell 1.5 percent, while MSCI's index
of Asian shares outside Japan dipped 0.06
percent.
Shares of Fukushima's operator Tokyo Electric Power (TEPCO)
were untraded on a flood of sell orders on a newspaper
report. The Yomiuri paper citing unidentified government sources
said there is talk to temporarily nationalise the utility, which
a top Japanese official denied. []
"TEPCO is the ground zero of the problem," said Adrian
Foster, head of financial markets research Asia-Pacific at
Rabobank International in Hong Kong. "This is disproportionately
a Japan issue
A tepid session on Wall Street overnight reinforced
investors' aversion to piling back into riskier assets. Data
showed U.S. consumers increased spending in February but much of
the gain went to cover rising food and energy costs, giving the
economy only a modest lift.
EURO FINDS FOOTING
In currency markets, the euro stabilised after ECB chief
Jean-Claude Trichet said inflation in the euro zone was
"durably" above the central bank's target, reinforcing the view
it will raise interest rates early next month. The move would
boost the value of the single currency and returns on
euro-denominated investments.
Still, the euro remained under pressure on the region's
festering sovereign debt problems and uncertainties stemming
from Sunday's loss of a key state election by Germany's ruling
party.
The euro last traded at $1.4075 , compared with
$1.4078 late in New York on Monday. Early in the session, it was
as high as $1.4088.
The yen firmed against the dollar as the discovery of
plutonium leak at the Fukushima plant, together with the
fighting in Libya and unrest in the Middle East, stoked some
safe haven demand for the Japanese currency.
The dollar fell about 0.2 percent to 81.68 yen ,
moving further away from 82.00 -- the March 18 high hit after
the world's major central banks intervened to stem the yen's
strength.
A steady euro fostered support for gold after losing ground
on Monday. Spot gold was last $1,417.30 an ounce in
tight-range trading, compared with $1,419.50 late in New York on
Monday. It is 2 percent below the record high of $1,447.40 set
on March 24.
Oil prices fell for a fourth straight session after rising
on a weak dollar and the political turmoil in North Africa and
Libya.
Several OPEC producers have boosted output recently to make
up for supply disruptons in Libya as rebels fight government
forces.
Brent crude <LCOc1> fell 55 cents to $114.25 a barrel, while
U.S. crude <CLc1> slipped 65 cents to $103.33.
(Additional reporting by Antoni Slodkowski and Natsuko Waki in
TOKYO; Rujun Shen and Randy Fabi in SINGAPORE; Editing by Kim
Coghill)
