* Australian shares test 5-year highs in early trade
* Fed tapering expectations pushed to next year afterpayrolls disappoint
* S&P 500 E-mini futures down slightly after S&P 500 closesat record
* U.S. 10-year Treasury yield wallows at lowest levels sinceJuly
By Lisa Twaronite
TOKYO, Oct 23 (Reuters) - Australian stocks tested five-yearhighs and the dollar was stuck near a two-year low against theeuro on Wednesday after disappointing U.S. jobs data firmlypushed expectations for the tapering of Federal Reserve stimulusinto next year.
Nonfarm payrolls increased by 148,000 workers in September,less than expected. And while the employment gain in August wasrevised up, the July figure was revised down to be the weakestsince June 2012.
The report suggested the economy was losing momentum evenbefore the U.S. fiscal standoff that partially shut down the government for more than two weeks, lending credence to thecentral bank's decision to hold off on reducing its stimulus.
"In light of the moderate tone of the September employmentreport, we have pushed out our expectation for the first Fedtapering in the pace of asset purchases to March 2014 fromDecember 2013," strategists at Barclays wrote in a note toclients.
Nine of 15 U.S. primary dealers surveyed by Reuters onTuesday expect the Fed to begin tapering its $85 billion a monthbond buying programme in March.
The dollar was steady at 98.14 yen, but remainedunder pressure elsewhere. The euro was at $1.3779, justbelow Tuesday's peak of $1.3792, its strongest since Nov. 2011.
Australian shares were 0.1 percent higher in earlydeals, testing new five-year highs, and MSCI's broadest index ofAsia-Pacific shares outside Japan also addedabout 0.1 percent.
U.S. S&P 500 E-mini futures were down about 0.1percent in early Asian trade, after the S&P 500 Index hadclosed at a record high on Tuesday.
The yield on benchmark 10-year Treasury notes edged down to 2.510 percent, its lowest since July 24, afterclosing U.S. trade at 2.512 percent.
On the commodities front, concerns about a near-term U.S.crude surplus helped push the U.S. crude price down about0.2 percent to $98.13.
Gold was nearly unchanged at $1,340.71 an ounce,having risen to a three-week high after the payrolls data.
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