RPT-GLOBAL MARKETS-Asia stocks off 1-month high; euro dips

* Asia stocks ease on concerns over U.S. economy

* Indonesian stocks buck weakness, hit new record high

* Euro dips after WSJ report revives European bank fears

* Yen near 15-year high against dollar
(Repeats to more subscribers)

By Kevin Yao

SINGAPORE, Sept 7 (BestGrowthStock) – Asian and European stocks
eased on Tuesday as caution over the global economy persuaded
investors took profits on recent gains, while the euro fell (Read more about the trembling euro. )
after a newspaper report rekindled fears about the
vulnerability of European banks.

Concerns over the pace of global economic recovery lingered
even after better-than-expected U.S. manufacturing and jobs
data last week eased fears that the world’s biggest economy
might slide back into recession.

Leading European shares (.FTEU3: ) dipped 0.2 percent in
early trade while S&P futures (SPc1: ) slid 0.3 percent, pointing
to early weakness on Wall Street as U.S. markets reopen after
the long Labor Day holiday weekend.

“The market still has some reservations about the global
growth momentum. We cannot say the risk of a double-dip U.S.
recession is over,” said Daniel Chan, chief economist and
wealth management strategist at BWC Capital Markets in Hong
Kong.

The MSCI Asian stock index outside Japan (.MIAPJ0000PUS: )
shed 0.2 percent, but is still up nearly 5 percent this month
as strong growth in the region partly offsets concerns about
weakness in major developed economies.

Investors’ appetite for riskier assets has revived somewhat
after payroll data on Friday offered a ray of hope for the U.S.
economy. Though employment fell for a third straight month, the
drop was far less than expected and private hiring was a
positive surprise, relieving concerns that its recovery was
stalling.

Another report on Friday, however, showed growth in the
dominant U.S. services sector hit a seven-month low,
highlighting the sluggishness of the economy. [ID:nN02227856]

Japan’s Nikkei average fell 0.8 percent on profit-taking
after four straight days of large gains and as the yen’s
strength showed little sign of abating.

But the index managed to hold above its 25-day moving
average, which had served as resistance for most of last month,
a sign it could resume climbing once profit-taking is absorbed.

Some Southeast Asian markets bucked the general weakenss,
with Indonesian stocks (.JKSE: ) hitting another record high as
foreign investors continue to pump money into Southeast Asian
assets, drawn by the region’s robust economic growth and the
prospects for further currency appreciation.

Investors are awaiting a flood of Chinese data as early as
this week that is expected to show continued moderation in
economic growth in August, another bumper trade surplus and an
increase in inflation. [ID:nSGE685069]

EURO DIPS

The euro fell (Read more about the trembling euro. ) 0.6 percent to $1.2797 (EUR=: ) after a Wall
Street Journal report stoked fears about the viability of
European banks by highlighting the weakness of euro zone stress
tests earlier in the year. [ID:nTOE685072]

The single currency was also pressured by comments from
Germany’s banking association on Monday that the country’s 10
biggest banks may need 105 billion euros of additional capital
under a revamp of banking rules designed to prevent future
financial crises. [ID:nLDE6850Q9]

The euro hit a three-week peak the previous day.

“Concerns about euro zone banks have been growing again,
hitting investor sentiment that had improved a little after
better-than-expected U.S. jobs data last week,” said Tsutomu
Soma, senior manager of the foreign securities department at
Okasan Securities.

The yen (JPY=: ) held largely steady against the dollar
(JPY=: ), remaining within sight of a 15-year high, as investors
remain keen to buy safe-haven currencies, such as the Japanese
currency and the Swiss franc.

RPT-GLOBAL MARKETS-Asia stocks off 1-month high; euro dips