* Asian stocks excluding Japan hit two week lows
* China rate hike fears, euro zone debt concerns persist
* Dollar erases losses as U.S. Treasury yields climb
* Japan's Nikkei outperforms after Q3 growth accelerates
By Ian Chua
SYDNEY, Nov 15 (Reuters) - Asian stocks fell to two-week
lows on Monday while the dollar rose as worries that China will
tighten monetary policy and persistent concerns about the euro
zone debt crisis kept investors cautious.
European shares are expected to open lower, extending
losses for the fourth session, hurt by concerns over Ireland's
debt woes and a sell-off in metal prices.
Bargain hunting in early Asian trade quickly gave way to
more selling as Chinese stocks <> struggled following a
5.2 percent slide on Friday, when fears China will lift rates
gripped markets.
Analysts expect more market volatility towards the year-end
as Chinese authorities are seen taking further steps to keep in
check liquidity in the financial system.
"An imminent interest rate rise after recent bank reserve
increase is still very likely," said a trader at a Shanghai
securities house.
Reversing earlier gains, the MSCI index of Asia Pacific
stocks outside Japan <.MIAPJ0000PUS> fell 0.7 percent to reach
lows not seen since Nov. 1. On Friday, the index slid 1.9
percent to post its biggest one-day percentage fall since late
June.
There was also little clarity on Ireland's funding problems
after the country did not rule out the possibility it may have
to turn to Europe for help in dealing with its debt crisis, but
said no application had been made for assistance yet.
[]
Markets drew no comfort from the G20 and APEC meetings,
which left leaders of the world's most powerful economies
little closer to agreeing on how to prevent fresh crises.
Many analysts said markets had been due for a pullback
regardless, as profit taking set in after a two-month-long
rally and traders prepared to close their books heading into
the year-end.
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More stories on APEC leaders' meeting: []
More on G20 issues:
[] PDF of G20 battle on imbalances:
http://r.reuters.com/jux34q
For a description of the EU safety net: []
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Australia's S&P/ASX 200 index <> slipped 0.1 percent,
Hong Kong's Hang Seng index <> shed 0.2 percent while the
Shanghai Composite Index <> was up 0.2 percent, having
drifted in and out of negative territory.
Japan's Nikkei average <>, however, climbed 1.1
percent as exporters such as Canon Inc <7751.T> benefited from
a weaker yen and data showing Japan's economic growth
accelerated in the third quarter spurred investors to buy on
dips.
BHP Billiton <BHP.AX> fell 0.4 percent as investors took
profits on earlier gains after the top global miner scrapped
its $39 billion bid for Potash Corp <POT.TO> and said it would
return $4.2 billion to investors through a share buy-back.
Some investors also described the buy-back as modest.
[]
U.S. YIELDS CLIMB
The dollar reversed losses against a basket of major
currencies <.DXY>, climbing 0.2 percent after the 10-year
Treasury note yield <US10YT=RR> rose to a two-month high at
2.823 percent.
"Comments from Richmond Fed President Lacker that he
opposed the Fed's new round of QE and the policy was more
dangerous than it is worth sparked the initial move, leading to
broad based USD short covering," said Sue Trinh, currency
strategist at RBC in Hong Kong.
This saw the dollar climb to 82.77 yen <JPY=> from 82.39
yen late in New York on Friday, and the euro <EUR=> slip back
below $1.3700. Commodity currencies such as the Australian
dollar erased earlier gains.
Further hurt by renewed pressure on commodity prices, the
Aussie dollar <AUD=D4> retreated to $0.9820 from a session high
around $0.9900 and was down some 3.5 percent from a 28-year
high around $1.0182 set last week.
On the London Metal Exchange (LME), benchmark copper
<CMCU3> fell 1.3 percent to $8,505 a tonne, extending Friday's
3 percent slide. Gold <XAU=> was a touch lower on the day at
$1,364.09 an ounce, but still off a one-week low of $1,359.70
seen on Friday.
U.S. crude oil <CLc1> edged 0.1 percent lower to $84.81,
and was about 4 percent below a 25-month high of $88.63 hit
last Thursday.
(Additional reporting by Jun Ebias and Lu Jianxin in Hong
Kong and Shanghai)
(Editing by Kazunori Takada)
