Asia stocks fall on US economy concerns

SINGAPORE, May 11 (Reuters) Asian stocks from tech exporters such as Sony to US-exposed mall operator Westfield dipped today after disappointing US retail sales fuelled concerns about the outlook for Asia's biggest overseas market.

Chinese shares -- which have hit records as retail investors have piled in, ignoring warnings that stocks have risen too far -- were among the leading fallers.

Investors turned cautious, helping Japanese government bonds gain traction, mindful that a reversal might trigger a global sell-off similar to one in late-February that hit global markets.

After the steepest fall in US stocks in two months and declines in most Asian markets, financial bookmakers predicted European markets would open lower, calling the FTSE 100 down around 25 points.

Some currency investors were more sanguine, seeing the equity decline as a market correcting itself after having run up too far, too fast.

''I don't think it will be much of an impact as it's only a one-day move,'' said a trader at Bayerische Hypo und Vereinsbank in Singapore.

The dollar was steady at 119.88 yen by 0630 GMT, while the euro stabilised at $1.3478 after falling to a one-month low around $1.3465 in the previous session.

Falls in economically sensitive stocks, such as technology companies Canon Inc. and Sony Corp., helped drive the Nikkei down 1 percent. The index was also pressured by a steep fall in shares in Casio Computer Co. on a downbeat forecast and broker downgrades.

By 0630 GMT, the Shanghai Composite Index was down 0.4 percent. The benchmark has risen more than 50 percent this year.

In Hong Kong the Hang Seng was off 1 percent.

''There's no panic selling,'' said Andrew Sullivan, sales trading director at Daiwa Securities in Hong Kong.

Australia's S&P/ASX 200 fell 0.9 percent, dragged lower by banks and companies with U.S. earnings, among them shopping mall operator Westfield Group But South Korea's benchmark KOSPI's recovered to notch a record closing high with a gain of 0.2 percent, aided by a 14 percent jump in Hyundai Steel Co. after it said it signed a contract to secure iron ore.

MSCI's measure of Asia Pacific stocks excluding Japan slipped 0.8 percent, a day after hitting a record closing high.

Oil prices ticked up, adding to overnight gains triggered by supply disruptions from Nigeria and Congo Republic and a drop in North Sea shipments, which tightened the supply outlook.

London Brent crude currently more representative of the global market than U.S. oil was up 6 cents at $65.85 after a near-60 cent gain in New York trade.

Spot gold was trading at just below $668 an ounce after dropping as far as $664 the previous day -- its lowest since April 4.

Japanese government bond futures rose as investors took their cue from a fall in share prices and overnight gains in US Treasuries. June futures rose 0.27 point to 134.22, and the benchmark 10-year yield was off 2 basis points at 1.645 percent.

REUTERS PM DS1451