* Stocks heading for worst monthly fall since early 2009
* Strong Samsung results outweighed by tech sector worries
* Yen, Toyota recall additional drag on Nikkei
* Emerging equity funds see 1st outflows in 12 weeks-EPFR
* Euro losses mount on worries about Greece's debt
By Umesh Desai
HONG KONG, Jan 29 (Reuters) - Asian shares fell on Friday,
weighed down by tech stocks after lacklustre sales outlooks
from some sector heavyweights and as worries about the fiscal
health of Greece and Portugal undermined investor confidence.
A massive recall of millions of vehicles by the world's top
automaker Toyota Motor Corp <7203.T> added to concerns over
corporate earnings after poor outlooks from Motorola and
Qualcomm dented optimism for the technology sector.
Samsung Electronics <005930.KS>, the world's top maker of
memory chips and LCD screens, failed to lift the gloom despite
ts forecast-beating earnings as the region's shares head for
their worst monthly decline since early 2009.
Asia Pacific stocks outside Japan as measured by MSCI
<.MIAPJ0000PUS> struck a 2-month low with the technology index
down 1.8 percent and the material index 2.6 percent lower.
Fresh worries over public finances of Greece, Portugal and
other smaller euro zone countries dragged the euro <EUR=> down
to a six-month low against the dollar and a nine-month low
versus the yen, a trend which has gained momentum as investors
cut risk trades funded by the yen and dollar. []
"Debt concerns in Europe, earlier-than-expected
normalisation of Chinese monetary policy and disappointing
economic data in the U.S. are all adding up to force a number
of investors to cut their positions," said Khiem Do, head of
the Asia multi-asset group at Baring Asset Management, which
oversees $50 billion.
According to data from fund tracker EPFR Global, emerging
markets equity funds saw their first week of net outflows in
the period ended Jan. 27 after 11 weeks of inflows as investors
pared back their exposure amid fears of slowing growth in
China, where authorities are reining in bank lending.
[]
U.S. equity funds saw their biggest weekly outflow since
late June while European equity finds suffered net redemptions
for the third week in five, the data showed. Bond funds,
meanwhile, saw inflows, particulalry emerging market local
currency-denominated bonds.
The strength of the yen currency also hammered Japanese
stocks, which received a further setback after Toyota announced
it would extend to Europe and China a recall of millions of
vehicles due to faulty accelerator pedals and floor mats.
[]
Japan's Nikkei average fell 1.6 percent hit, by negative
earnings surprises from firms such as chip equipment maker
Advantest Corp <6857.T> which came on the back of Nippon Steel
Corp's <5401.T> warning of a first annual net loss in seven
years.
U.S. stocks fell by as much as 1.9 percent overnight after
both Qualcomm <QCOM.O> and Motorola <MOT.N> reported earnings
and outlooks that fell short of expectations. Qualcomm shares
tumbled 14.2 percent and Motorola Inc slid 12.4 percent. []
Several tech bellwethers this quarter have beaten modest
expectations and still have been viewed unfavorably by the
market, so the dismal reports were viewed even more negatively.
Fears that Athens will not be able to service its heavy
debt also unnerved investors and prompted them to shun riskier
investments, including stocks, although the country's prime
minister said it has not asked for a bailout. []
CURRENCIES
Currencies linked to global growth such as the Australian
dollar <AUD=D4> and the New Zealand dollar <NZD=> fell to
multi-week lows as investors moved out of higher-risk assets
and on caution ahead of U.S. fourth-quarter GDP data to be
released later on Friday at 1330 GMT.
Even though data on Thursday showed U.S. durable goods
orders rose and jobless claims fell in the world's largest
economy, analysts are wary it is not a strong recovery.
Mixed economic data from the world's other leading
economies also continues to keep investor sentiment cautious.
After Japan's better-than-expected export growth earlier
this week, data released on Friday showed the economy was in
the grips of deflation with core consumer prices marking their
tenth straight month of decline. []
In commodities markets, crude oil <CLc1> steadied around
$74 a barrel after three days of losses sparked by forecasts of
tepid oil demand in rich industrialised nations.
A firm dollar and concern over the pace and scope of credit
tightening in China drove Shanghai copper <SCFc3> down nearly 2
percent, following a drop in London prices in the previous
session.
(Editing by Kim Coghill)
