* Market signals mixed as Asia stocks, dollar retreat
* Oil extends gains on OPEC supply cut hopes
* Investors yanking funds out of Asian stocks
By Eric Burroughs
HONG KONG, March 9 (Reuters) - Asian stocks dipped on
Monday on worries about the fate of U.S. automakers and banks,
while the dollar retreated as market players booked profits on
the rise to a three-year peak last week.
Markets sent mixed signals at the start of the week, with
the safe-haven dollar and government bonds losing ground even
as financial shares dragged down most stock indexes. Oil prices
jumped for a second day on hopes for more OPEC supply cuts.
Japan's broad TOPIX index <> slid to a 25-year
intraday low as the country's shares remain the worst hit among
Asian markets, while the Shanghai Composite index <>
surrendered some of this year's solid gains on hopes for
economic recovery.
Asian stock markets have held up better than others in the
United States and Europe on expectations that households and
governments in the region have more scope to keep spending
because they are less indebted.
But analysts said Asia's dependency on exports meant that
regional equities were likely to play catch up with the tumble
elsewhere.
Figures on Monday showed Japan suffered its biggest current
account deficit on record in January on plunging shipments
abroad. []
"We don't believe Asia can outperform the G3 this year,"
said Clive McDonnell, Asia strategist at BNP Paribas in Hong
Kong. "In the past few weeks, Asia has rolled over quite
clearly."
The MSCI index of Asia-Pacific stocks outside Japan
<.MIAPJ0000PUS> dipped 0.5 percent following a slight rise in
the U.S. S&P 500 <.SPX> on Friday following dismal data showing
U.S. unemployment surging to a 25-year high in February.
Stocks slumped globally last week on renewed concerns about
the impact of the crisis in the United States as the government
stepped in with another lifeline for insurer AIG <AIG.N> and
General Motors' auditors raised doubts about the ability of the
company to survive outside of bankruptcy.
Regional currencies were mixed on Monday, with the South
Korean won <KRW=> slipping back towards an 11-year low even as
the Philippine peso <PHP=> edged up.
Foreign investors have been persistent sellers of Asian
stocks, one of the factors knocking regional currencies lower.
Fund tracker EPFR Global said that Asia ex-Japan equity
funds saw the biggest outflows among emerging market regions in
the week ending last Wednesday, seeing $1.09 billion yanked out
-- the most in 20 weeks.
Overall $10.4 billion was pulled out of global stock funds
followed by EPFR Global.
"Until equities stabilise globally, it is hard to see an
end to portfolio outflows from Asia," said Societe Generale's
FX sales desk in a note to clients.
DOLLAR BACKS DOWN
The dollar backed down from a three-year peak reached
mainly on the back of safe-haven buying and as U.S. investors
have kept selling their holdings of foreign assets to
repatriate funds.
The dollar index, a gauge of its performance against six
major currencies, dipped 0.2 percent to 88.369 after climbing
as high as 89.624 last week.
The U.S. currency also took a hit after the index fell just
short of the 90 line, which coincides with a 38.2 percent
Fibonacci retracement of its long slide between 2001 and 2008
that serves as a major point of chart resistance.
The euro gained 0.2 percent to $1.2681 <EUR=>, while the
dollar was little changed at 98.30 yen <JPY=>.
Oil prices jumped 93 cents to $46.45 a barrel <CLc1>,
gaining nearly 7 percent in the past two trading sessions on
expectations OPEC will cut supplies further. But gold dipped
$3.50 an ounce to $936.10 <XAU=>.
In government bonds, the benchmark 10-year Japanese yield
<JP10YTN=JBTC> was unchanged at 1.290 percent.
U.S. Treasuries posted slight gains. The 10-year note
<US10YT=RR> rose 3/32 in price to yield 2.864 percent, down
about a basis point from late New York trade on Friday.
