RPT-GLOBAL MARKETS-Asia stocks fall as risk taking pauses
* Ahead of US payrolls, investors tread cautiously
* U.S. dollar holds gains after surging overnight
* Oil flat at $66; energy shares tumble (Repeats to additional subscribers with no change to text)
HONG KONG, June 4 (Reuters) - Asian equities fell from eight-month highs on Thursday, led by commodity-related shares, after disapppointing U.S. private employment and services sector data led investors to trim over extended bets.
Major European stocks were expected to rise as much as 0.4 percent, according to financial bookmakers, though convictions were low with U.S. stock futures SPc1 pointing to a lower open later and the European Central Bank and the Bank of England meeting to set policy.
The U.S. dollar was largely steady against the euro after rebounding sharply overnight, benefitting as investors cut bets on higher-yielding currencies and after a Reuters story said Asian monetary officials would stick with U.S. Treasuries even if the top U.S. sovereign debt rating was downgraded. [ID:nL3553799]
Materials and energy stocks led the decline in Asian stocks from eight-month highs reached on Wednesday, following a 2.8 percent decline overnight in the Reuters-Jefferies CRB index .CRB, a global commodities benchmark.
The real test of investors' willingness to take risks for higher returns will come on Friday, when the May U.S. payrolls number is released. [ID:nSP471348]
"A dose of much needed reality has been swallowed by markets overnight. The tone of economic data has not so much changed, but perception of what constitutes an outright positive story certainly has," said Patrick Bennett, Asia foreign exchange and rates strategist with Societe Generale in Hong Kong, in a note.
The MSCI index of Asia Pacific shares outside Japan .MIAPJ0000PUS fell 2.8 percent, the biggest single-day decline since May 14.
The index was still up 31 percent so far in 2009. Utilities were largely unchanged on the day, as investors shifted some money to defensive bets, and consumer discretionary stocks outperformed on hopes domestic growth in Asia will remain resilient.
Japan's Nikkei share average .N225 edged down 0.75 percent, with industrial names like Fanuc (6954.T) and Shin-Etsu Chemical (4063.T) among the biggest drags on the market.
Small signs of hope in Japan's exports and production have paved the way for foreign investors to scoop up bargains, with official data showing foreign net purchases of equities for three of the last four weeks.
In Hong Kong, the Hang Seng index .HSI was down 2.4 percent, hurt by a mixed bag of banks, property developers and energy-related stocks, as the pause in the global equity rally encouraged shrinking both positions and exposure to risk.
BERNANKE'S BALANCE Continued...
