* Dlr firms as economic worries push investors to safe
assets
* Asian shares dip, tech shares hit by industry downgrade
* Asian currencies fall as risk appetite weakens
(Repeats to more clients)
By Susan Fenton
HONG KONG, Nov 20 (Reuters) - Asian shares fell on Friday
and the dollar firmed as investors took profits on riskier
assets after U.S. data raised fears that a global economic
recovery could lose momentum.
The dollar <.DXY> edged up 0.2 percent against a basket of
major currencies as some investors shifted back to safer assets
despite extremely low yields.
Investors were unnerved by a report showing that a record
one in seven U.S. mortgages were in foreclosure or at least one
payment past due in the third quarter, signaling a recovery in
the U.S. housing market will be tepid at best. [].
"Investors have turned more cautious, and they are awaiting
more U.S. data coming out next week," said Hwang Keum-dan, an
analyst at Samsung Securities in Seoul, where shares were down
0.2 percent but outperforming most other Asian markets.
Tech shares suffered some of the heaviest losses in Asia
after a U.S. brokerage downgrade on the semiconductor industry.
The subsequent rout in U.S. tech stocks overnight helped push
the S&P 500 index <.SPX> down 1.3 percent, its worst one-day
percentage fall in three weeks. []
The tech sector has been one of the leaders in a strong
global equities rally that has extended into its ninth month.
Japan's Nikkei index <> fell 1.3 percent and looked
set for a fourth week of losses, with electronics giant Sony
Corp <6758.T> sliding to a near four-month low on doubts the
company's new business strategy could deliver strong profit
growth. []
The MSCI index of Asia Pacific stocks traded outside Japan
<.MIAPJ0000PUS> and the Thomson Reuters index of regional
shares <.TRXFLDAXPU> were both down around 1 percent.
In Taiwan, the world's biggest contract chipmaker TSMC
<2330.TW>, which sells the bulk of its chips to North America,
fell 2.4 percent.
"Unless Christmas sales (of technology products) are very
good, we don't think the market can rebound significantly,"
said Alex Huang, director of Mega International Securities in
Taipei.
However, analysts said the retreat from equities may be
temporary as excess global liquidity will continue to encourage
fund inflows into Asia. The region's economies are showing
signs of rebounding from the global financial crisis far faster
than the United States, the UK and Europe, where consumer
sentiment remains fragile.
In Hong Kong -- which has attracted record fund inflows of
more than $70 billion since October last year -- central bank
chief Norman Chan warned that rapid inflows, which are raising
the risk of asset bubbles, posed a dilemma for policymakers
across Asia.
Even if economies in the region raised interest rates, that
could make dollar carry trades even more active and aggravate
fund inflows, Chan said. []
Carry trades involve borrowing money in a low-yielding
currency and using the funds to invest in other assets which
potentially offer far higher returns.
Asian currencies also suffered on Friday as investors
retreated from riskier assets, sending the Korean won <KRW=> to
a three-week low at 1,164.2 to the dollar.
The yen <JPY=>, like the dollar, benefited from demand for
safer assets, adding pressure on shares of Japanese exporters.
Japanese government bond futures hit a fresh seven-week
high as the stock market sagged and were also buoyed by
stronger U.S. Treasuries.
Crude oil futures <CLc1> gained 22 cents to $77.68 a barrel
after losing 3 percent in New York on fears that lacklustre
economic growth would limit energy demand.
Gold <XAU=> was slightly weaker at $1,140.30 an ounce as
the dollar gained ground, retreating after hitting another
record at $1,152.75 an ounce earlier this week.
(Additional reporting by Baker Li in TAIPEI; Editing by Kim
Coghill)
(susan.fenton@thomsonreuters.com; +852 2843 6367; Reuters
Messaging: susan.fenton.thomsonreuters.com@reuters.net)
