* World stocks lower as earnings season begins
* Dollar get short-lived boost from Chinese comment
* Greek auction shows investor concern
By Jeremy Gaunt, European Investment Correspondent
LONDON, Jan 12 (Reuters) - World stocks fell on Tuesday as
investors digested early results from the U.S. and European
earnings seasons while the dollar got a temporary boost from a
view from China that its decline has hit bottom.
Market worries about Greece, reeling from a huge debt burden
and downgrade, were on display with widening spreads while an
otherwise successful T-bill auction commanded less buying
interest and higher yields than previously.
MSCI's all country world stock index <.MIWD00000PUS> was
down 0.2 percent and Europe's FTSEurofirst 300 <> lost 0.4
percent.
Earlier, however, Japan's Nikkei <> hit a new 15-month
closing high, buoyed by China reporting record imports of some
commodities and stronger-than-expected exports.
Earnings season was a key focus for many investors. U.S.
aluminium producer Alcoa Inc <AA.N>, the first Dow Jones
industrial average <> component to announce results,
reported earnings below Wall Street estimates after the closing
bell on Monday.
"Many are now worried that the early miss by Alcoa could be
the theme of what is likely to be a fairly mixed and crucial
earnings season," said James Hughes, market analyst at CMC
Markets.
Underlining the potential for a mixed picture, the world's
fourth largest retailer, Tesco <TSCO.L>, smashed Christmas sales
growth forecasts in its main British market.
Investors have generally carried last year's risk rally
through into 2010, given the continuing improvement in the
global economy and the momentum from low interest rates and
government stimulus plans.
BOTTOM DOLLAR?
The dollar initially gained on comments from Peng Junming,
an official at China's $300 billion sovereign wealth fund CIC,
that the currency had hit bottom and had limited room to fall
further, while the yen would continue to weaken.
But it fell back later. The dollar was flat against a basket
of currencies <.DXY> and the euro <EUR=>, but a third of a
percent lower against the yen.
On debt markets, euro zone government bond prices were
higher.
Greece successfully sold 1.6 billion euro in 6- and 12-month
T-bills, but investor concern about its debt problems and
worries about the euro zone's so-called peripheral economies was
apparent.
The auction produced a yield of 2.20 percent for the 52-week
paper, up from 0.91 percent in a previous Oct 13 auction and
higher than dealers had expected. The bid-cover ratio was 3.05
versus 4.44, suggesting continuing, but weaker, demand.
Such auctions are usually dominated by domestic investors.
(Additional reporting by Simon Falush; editing by John
Stonestreet)
