RPT-GLOBAL MARKETS-Asian stocks slide, dollar rises
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* MSCI index of Asia stocks outside Japan hits 3-mth low
* Dollar rises vs most major currencies on risk aversion
* S.Korean won hits 11-year low vs dollar
* Oil falls on worries about global economy
TOKYO, March 2 (Reuters) - Asian equities slid after data last week showed a sharp drop in U.S. fourth-quarter growth, and on worries the U.S. government may need to extend additional help to an ailing financial sector.
The dollar climbed against major currencies other than the yen, and extended its recent gains against the South Korean won to hit another 11-year peak. [FRX/] [KRW/]
Stock markets in Asia fell broadly, with the MSCI index of Asia-Pacific stocks outside Japan hitting a 3-month low, and U.S. S&P 500 futures fell 1.4 percent SPc1.
"This may be a risk aversion play again and the dollar usually does well in these," said Jan Lambregts, economist at Rabobank International in Hong Kong.
The dollar rose broadly after sources said the U.S. government would pour a further $30 billion into embattled insurer American International Group (AIG.N), fuelling safety buying of the U.S. currency. [US/] [ID:nN01344575]
The AIG move follows a new rescue plan for Citigroup (C.N), adding to fears that more financial firms may need similar rescue plans, analysts said.
"The market has become increasingly concerned that the need for rescues is broadening to other major U.S. banks after Citigroup and AIG," said Kengo Suzuki, a currency strategist for Shinko Securities.
The euro fell 0.3 percent to $1.2585 EUR= and sterling fell 0.6 percent to $1.4223 GBP=D4. The dollar eased 0.1 percent to 97.58 yen JPY=, pulling further away from a 3-½ month high of 98.72 yen hit last week.
The dollar index, which measures the dollar's performance against a basket of major currencies, rose 2.7 percent .DXY in February, even as the S&P 500 slid nearly 11 percent .SPX.
"I am convinced that one of the underlying core elements is that U.S. companies are repatriating money, there's deleveraging going on. That's benefiting the dollar, for sure," said Lambregts at Rabobank, regarding the dollar's recent rise.
ASIAN SHARES SLIDE
The MSCI index of Asia-Pacific stocks outside Japan slid 3.6 percent on Monday to 206.48 and hit its lowest levels since late November .MIAPJ0000PUS, when it hit a 5-year low of 194.03.
Besides worries about the U.S. financial sector, Asian shares slumped after data on Friday showed the U.S. economy shrank at an annual rate of 6.2 percent in the fourth quarter, its deepest contraction since early 1982. [nN27328979]
"As the U.S. economy gets worse, Japan and other Asian economies will be hit one to two times harder since manufacturers will take a hit," said Masayoshi Okamoto, chief of dealing at Jujiya Securities in Tokyo.
Japan's Nikkei stock average slid 3.2 percent .N225, with Mitsubishi UFJ Financial Group (8306.T) and other banks sinking on fears about their U.S. peers, while exporters fell on worries over the U.S. economy. [.T]
U.S. Treasuries trimmed some losses after falling on Friday amid concerns that a massive tide of government debt issuance could push prices lower. [US/]
Benchmark 10-year U.S. Treasuries rose 6/32 in price to yield 2.997 percent US10YT=RR, down 2 basis points from late U.S. trading on Friday. The 10-year yield is up nearly a full percentage point from five-decade lows hit in mid-December.
The benchmark 10-year Japanese government bond yield rose 1 basis point to 1.280 percent JP10YTN=JBTC ahead of an auction of 10-year JGBs on Tuesday. [JP/]
Gold rose more than 1 percent XAU= on bargain hunting. [GOL/]
U.S. oil prices fell more than $1 to $43.75 a barrel CLc1, extending Friday's decline amid fears that the ailing global economy would further damage energy demand. [O/R] * For state of play of Asian stock markets, click: <0#.INDEXA> * For Reuters Global Investing Blog, click: here; * F MacroScope Blog, click: blogs.reuters.com/macroscope * For Hedge Fund Blog Hub, click: blogs.reuters.com/hedgehub) (Additional reporting by Satomi Noguchi and Elaine Lies) (Editing by Ian Geoghegan)
