* Asia stocks fall 1 pct in light trade, techs outperform
* Shanghai falls more than 5 pct, fallout limited
* W.House to renominate Bernanke as Fed chief, little
impact
* Markets reverse moves from Monday, yen posts broad gains
(Repeats to more subscribers)
By Eric Burroughs
HONG KONG, Aug 25 (Reuters) - Asian shares and commodities
slipped on Tuesday in a partial reversal of the previous day's
solid gains, but many investors stuck to the sidelines awaiting
more clues on whether the global economic recovery is picking
up steam.
European shares were also poised for a retreat, with
futures on the Dow Jones Eurostoxx 50 <STXEc1> down 0.9
percent.
The Shanghai Composite index <> tumbled more than 5
percent as cautious remarks from Chinese Premier Wen Jiabao on
Monday stirred worries about the economic rebound in the
country that has helped fuel recovery hopes in much of Asia.
The latest slide in Shanghai was mainly driven by investors
taking advantage of the 7.5 percent bounce over the previous
three trading days to pull funds out, hitting bank shares the
hardest. But the fallout from Chinese losses on other global
markets was limited, unlike slides seen last week.
"In China's market, it's always those investers who eye an
overnight fortune who take the lead in dumping shares when the
market becomes unstable," said a senior trader at Guotai Junan
Securities in Shanghai.
"Generally speaking, their withdrawal will not result in a
prolonged market slump, but it will often nevertheless keep the
market in a standstill for weeks, if not months."
Investors showed little reaction to news that the White
House will tap U.S. Federal Reserve Chairman Ben Bernanke for
another term at the helm of the central bank. []
Analysts said the decision had been widely expected, but
still removed some uncertainty about the outlook for U.S.
monetary policy and was neutral for U.S. assets and the dollar.
Some analysts had said a decision not to reappoint Bernanke
would have been a negative by risking politicising the Fed
chief post at a time when investors are worried about record
U.S. deficits.
"When you look at responses to last year's financial
crisis, bold action was taken and the market reacted to that
favourably," said Takahide Nagasaki, chief FX strategist at
Daiwa Securities SMBC in Tokyo.
"I don't think there will be any major impact, but it
should be positive for stock and bond markets in the sense that
an element of uncertainty has been removed."
The MSCI index of Asia-Pacific shares outside Japan
<.MIAPJ0000PUS> dropped 1 percent, with consumer discretionary
and health care stocks the bigger decliners. The index is still
up about 47 percent for the year and near an 11-month high
struck earlier in the month.
Technology shares held up the best on hopes that frail
consumer demand is picking up heading into the key U.S.
back-to-school and holiday shopping seasons.
South Korea's LG Display <034220.KS> the world's No. 2 LCD
panel maker, recovered from early losses to rise 2.6 percent
after confirming it had signed a non-binding agreement to build
an LCD plant with the city of Guangzhou, China. []
[]
Share trading volumes were very light for a second day
running, leading to exaggerated moves across markets.
Japan's Nikkei average <> shed 0.8 percent after
jumping 3.4 percent the previous day, its biggest one-day gain
in 3-
