* Asian shares fall after Fed's cautious economic outlook
* Dlr recovers but vulnerable as U.S. commits to low rates
* Euro draws profit taking before ECB meeting
* European stock futures down 1.2 pct
By Susan Fenton
HONG KONG, Nov 5 (Reuters) - Asian shares fell on Thursday,
while the dollar recovered most losses made after the U.S.
Federal Reserve vowed to keep rates near zero for "an extended
period" and saw a sluggish recovery in the world's biggest
economy.
European shares were set to fall at the start, with futures
on the Dow Jones Euro Stoxx 50 <STXEc1> down 1.2 percent. U.S.
equity futures <SPc1> were 0.4 percent lower.
The euro <EUR=> drew profit taking ahead of a European
Central Bank meeting later on Thursday. The ECB is expected to
keep interest rates at a record low but may give clues on when
it will start weaning banks off cheap funds. []
The euro fell to $1.4818, from $1.4865 in early trade.
Sterling <GBP=D4> also slipped before a Bank of England
meeting, with policymakers set to decide whether to inject more
stimulus into the British economy. []
Asian share markets fell as investors gained little
encouragement from the Fed, which vowed to maintain a very
loose monetary policy in the absence of inflation pressure, and
said U.S. economic recovery, though building, would be muted.
[]
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> fell 1 percent while the Thomson Reuters index
of regional shares <.TRXFLDAXPU> was 1.5 percent lower.
All eyes now are on U.S. job data on Friday for more clues
on the state of U.S. economic recovery, analysts said.
"Investors were pushing the market lower, preparing for
more selling by investors such as hedge funds in case U.S. jobs
data raises a disturbance," said Tsuyoshi Segawa, an equity
strategist at Mizuho Securities in Tokyo.
Japan's Nikkei <> share index slid 1.3 percent to a
one-month closing low.
Shares of exporters were hit by early gains in Asian
currencies although the dollar recovered ground. It was up 0.2
percent against a basket of currencies <=USD> at 75.9 by
mid-afternoon. Dealers said it remained vulnerable as the Fed
statement did not signal a change in monetary policy.
Toyota <7203.T> shares, however, could be poised to rebound
on Friday after the world's biggest carmaker by sales sprung a
surprise quarterly profit and slashed its annual loss forecast
by more than half. [] Toyota shares fell 0.8
percent, closing before the earnings announcement.
HYUNDAI SHARES SLUMP
In Seoul, shares <> tumbled 1.8 percent with trade
volume hitting a 14-month low. That was despite upbeat economic
data, including double-digit department store sales growth and
a further rise in exports to China last month.
Hyundai Motor <005380.KS> shares slumped 4.2 percent after
analysts said Korea's top car maker, which specialises in small
and mid-sized cars, could lose market share in the United
States.
Asian currencies were mixed by mid-afternoon. Indonesia's
central bank intervened to support the rupiah <IDR=> as
investors took profits on a recent rally.
Thailand's central bank governor Tarisa Watanagase, in an
interview with Reuters, said she was not worried about
appreciation of the Thai baht <THKB=>, which is up 4 percent
this year, saying it remained competitive for trade.
[]
Shares in Australia slid 0.7 percent, but toll-road
operator Transurban Group <TCL.AX> rallied nearly 20 percent
after the company rejected a takeover offer by two Canadian
pension funds but said it was open to talks. []
Japanese government bond futures fell, tracking a slide in
longer-term U.S. Treasuries on investor fears of excessive
government debt supply after the Fed's statement and a weak
10-year bond auction.
Gold <XAU=>, buoyed this week by India's 200-tonne purchase
from the IMF, slipped to $1,085 an ounce after hitting another
record high overnight, at $1,097.25.
In New Zealand, the kiwi dollar <NZD=> fell after weak job
data there and the central bank said economic recovery was more
vulnerable than in Australia and the jobless rate hit a
nine-year high. []
"New Zealand has had a recession, and the pick-up is slower
and more vulnerable -- a difference financial markets do not
appear to appreciate," Reserve Bank of New Zealand Governor
Alan Bollard said in notes prepared for a business group.
The kiwi fell to as low as $0.7179, from around $0.7270
before Bollard's comments.
Weak equity markets pushed the oil price <CLc1> down 0.9
percent to $79.7 a barrel, after its more than $3 gain in the
past three days.
(Additional reporting by Gyles Beckford in WELLINGTON and Aiko
Hayashi in TOKYO; Editing by Kazunori Takada)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
