CORRECTED-GLOBAL MARKETS-Asia shares rally on Citi rescue

* Asia shares gain on relief at Citigroup rescue

* Nikkei gains 5.2 pct, other major indexes up 2-5 pct

* Risk aversion recedes, safe havens such as bonds shunned

* Oil, gold fall after previous day surges (Corrects BHP-Rio Tinto takeover offer value to $66 billion from $58 billion in paragraph 14) (Repeats to more subscribers, updates with Asian prices, European pre-open, new quotes)

By Rafael Nam

HONG KONG, Nov 25 (Reuters) - Asian shares rallied and bonds fell after the U.S. government rescued banking giant Citigroup (C.N) in a bid to prevent further damage to the ailing global financial system.

But European shares were set for a tepid start, with Britain's FTSE 100 .FTSE seen between down 4 points to up 3 points.

The yen edged up from sharp falls a day earlier and gained against major currencies, but some traders said the Japanese currency could stall in the near term if investors continued to return to battered equity markets and other riskier assets from so-called safe havens such as bonds.

Oil prices retreated below $54 after surging more than 9 percent in the previous session, a rally that was big enough to send regional commodity-related stocks such as BHP Billiton (BHP.AX) sharply higher.

But plenty of near-term risks remained, including whether other global lenders are in need of rescue, the fate of U.S. auto makers and indicators that continue to signal a rough road ahead for the global economy.

China's growth could well slow to its weakest pace in almost two decades next year, the World Bank said, the latest grim prognosis for a global economy buckling despite the concerted efforts of policymakers.

"What we are seeing is just short-term optimism and hope. Economic data from the U.S., Japan is not encouraging. So, the future is not promising," said Amitabh Chakraborty, president-equities at Religare Securities in India.

The MSCI index of Asia-Pacific stocks excluding Japan .MIAPJ0000PUS rose 3.8 percent as of 0700 GMT, heading towards a third consecutive daily gain.

Japan's Nikkei average .N225 jumped 5.2 percent, resuming trade after a public holiday on Monday.

The broader market rally comes after an initially tepid Asian reaction to the U.S. plan, announced early on Monday Asian time, to shoulder most potential losses on about $306 billion of Citigroup's risky assets and inject capital into the struggling lender. [ID:nN24499982]

But a subsequent Wall Street rally, which capped the best two-day run since the aftermath of the 1987 stock market crash, put some of those doubts to rest, sparking optimism the U.S. government could similarly step in to support other big banks.