(Refiles to fix tpyo in headline)
* Markets cautious after fresh developments in Egypt
* Euro slips on poor demand at Portuguese bond auction
HONG KONG, Feb 11 (Reuters) - Asian shares slipped to
two-month lows on Friday as investors were wary of adding risk
due to rising uncertainty in Egypt while the euro came under
pressure due to renewed concerns on the euro zone's debt crisis.
Seoul shares crept higher before an interest rate
decision where the central bank is expected to raise rates while
Australia's benchmark index snapped a seven-day winning
streak as investors took profits from banking and resource
shares.
Japanese markets are closed for a national holiday.
MSCI's index of Asia Pacific shares outside Japan
languished at its lowest level since mid
December, with poor results from technology bellwether Cisco
Systems overnight, weighing on sentiment.
Egyptian President Hosni Mubarak's plans to relinquish
powers but not step down did little to boost investor hopes of a
quick solution to the Egyptian crisis and gave a small leg up
to oil prices. .
Emerging markets may be hit in the short-term due
to the fresh developments in Egypt, Brown Brothers Harriman
said.
In the currency markets, the U.S. dollar edged higher after
notching up solid gains against the euro overnight, after
traders said the European Central Bank stepped in to rescue a
failing Portuguese bond auction. .
The euro last traded at $1.3600 . Support is seen at
around $1.3483, a level representing the 38.2 percent
retracement of the Jan. to Feb. rally.
"Any easy gains in the EUR are susceptible to rapid
reversal," said David Watt, senior currency strategist at RBC
Dominion Securities.
"Overnight EU peripheral jitters reemerged ... EUR reacted
as one might expect, it sold off from just over $1.37 to a low
of $1.3577."
The Australian dollar extended losses after the
central bank said interest rates are likely to be on hold for
some time. .
Gold , was steady at around $1,364 an ounce and U.S.
crude oil futures rose 88 cents to $87.61 a barrel. .
(Additional reporting by Ian Chua in SYDNEY)
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