* Dollar skids on report Gulf will end dlr use for oil
trade
* Asian shares gain after U.S. services data
* Aussie dlr firm as speculation on surprise rate rise
mounts
By Susan Fenton
HONG KONG, Oct 6 (Reuters) - The dollar skidded against the
euro and the yen on Tuesday after a British newspaper reported
that Arab states were in talks to end using the dollar for oil
trading, but Asian shares rose as U.S. services sector data
lifted investors' mood.
The dollar slid to about $1.4709 against the euro <EUR=>,
from $1.4664, and to as low as 88.97 yen <JPY=>, from 89.40,
after the report in Britain's Independent newspaper.
Citing unidentified sources, the paper said Gulf Arab
states were in secret talks with Russia, China, Japan and
France to replace the dollar with a basket of currencies and
gold for trading in oil within nine years. []
"This is U.S. dollar negative news which is moving markets
and shows that central banks not just in Asia are looking to
diversify away from the dollar," said Jonathan Cavenagh,
currency analyst at Westpac.
Gold <XAU=> edged up to $1,018.85 an ounce from just above
$1,015.
Shares across Asia gained as upbeat U.S. services data
buoyed investors, offsetting disappointment over U.S. payrolls
last Friday.
All eyes were on Australia amid mounting speculation the
central bank could announce a surprise rate rise at 0330 GMT.
That kept the Aussie dollar <AUD=> on a strong footing. It was
quoted at $0.8780, up from $0.8727 on Monday.
A rise would make Australia the first G20 nation to raise
rates since the crisis worsened with Lehman's collapse last
year.
Analysts said the Aussie, up 24 percent against the dollar
this year, was likely to remain relatively firm even if the
Reserve Bank of Australia keeps rates unchanged.
"The Aussie may dip slightly against the dollar if the RBA
holds rates, as an immediate reaction. But it will keep its
firm trend," said Hideki Hayashi, global economist at Mizuho
Securities in Tokyo.
Australian shares trimmed early gains ahead of the rate
decision, but investor sentiment across the region was boosted
by data showing the U.S. service sector expanded last month for
the first time in a year [].
The data came as a relief after Friday's payrolls data
showing U.S. employers unexpectedly cut more jobs in September
than in August and helped the Dow Jones <> to a 1.2 percent
gain.
WON INTERVENTION
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> and the Thomson Reuters index of regional
shares <.TRXFLDAXPU> were both up 1 percent.
China's markets are closed until Friday for public
holidays.
Japanese shares were more subdued, with the Nikkei index
<> flat, as the yen's recent strength has raised concern
about exporters' earnings.
In Korea, equities rose 0.1 percent as Samsung Electronics
<005390.KS>, the world's top maker of memory chips and
flat-screen TVs, announced a higher-than-expected third-quarter
earnings forecast. []
Samsung's share price rose 1.2 percent and has rallied 68
percent this year as tech stocks outperformed the market.
Asian currencies were generally firmer as the dollar came
under pressure.
The New Zealand dollar <NZD=>, up nearly 50 percent since
early March, touched a 14-month high after data showed a
rebound in business confidence.
The South Korean won <KRW=> hit a one-year high against the
U.S. dollar. It and then retreated on suspected intervention by
the authorities [] while a finance ministry told
Reuters the authorities were ready to intervene if the won
overshoots fundamentals. []
U.S. crude oil futures <CLc1> stayed above US$70 a barrel,
inching up to US$70.47 and helped by the U.S. services data.
(Additional reporting by Anirban Nag in SYDNEY and Kaori
Kaneko in TOKYO; Editing by Jan Dahinten)
