GLOBAL MARKETS-Asian shares, currencies fall on Fed tapering worries


* U.S. adds 204,000 jobs in Oct, sharply above forecast

* China's Oct factory output, CPI rise

* Dollar gains against euro and yen

* Indonesian rupiah, Thai baht, Indian rupee fall

* Tokyo's Nikkei jumps 1.3 pct

By Dominic Lau

TOKYO, Nov 11 (Reuters) - Asian shares fell to a four-weeklow on Monday as a surprise surge in U.S. jobs growth heightenedworries the Federal Reserve will start reducing stimulus as soonas next month -- boosting the dollar against the euro, yen andemerging currencies.

MSCI's broadest index of Asia-Pacific shares outside Japan shed 0.5 percent, hitting its lowest since Oct.11 and extending Friday's 1 percent drop.

Jakarta shares fell 0.8 percent, Thai stocks lost 1.5 percent and the Manila bourse dropped 1.7percent.

"Stronger than expected U.S. labour market report willincrease fears of portfolio capital outflow from emergingmarkets, and will weigh on current account deficit currencies inparticular," Credit Agricole CIB said in a client note.

Emerging Asian currencies came under pressure, with theIndonesian rupiah down 1 percent to 11,551 per dollar,hitting a one-month low, and Thai baht off 0.9 percentto 31.66 to a seven-week trough.

The Indian rupee was down 1.3 percent at 63.281 per dollar while the Philippine peso eased 0.5 percent to43.38 against the greenback, a one-month low.

Major European indexes wereexpected to open flat to modestly higher.

U.S. employers took on 204,000 new employees last month,almost twice the number forecast by analysts and defyingexpectations that the partial U.S. government shutdown wouldhamper job growth.

The strong data raised the prospect the Federal Reserve maysoon decide to start winding down its $85 billion-a-monthbond-buying programme.

Fed Chairman Ben Bernanke and two other top policymakerssuggested continued support for the U.S. central bank's massivestimulus campaign, however.

A hedge fund manager said it was unlikely that the Fed willstart reducing stimulus by year-end.

"If people get concerned about rates in the U.S. movinghigher and QE ending sooner, obviously that will have an impact.But I don't think it's going to happen anytime soon," he said.

"I just think they wouldn't do anything before the end ofthe year because of the impact on sentiment and consumption. Ithink it's too early to talk about it."

The Chinese CSI300 Index rose 0.4 percent in achoppy session after touching a 2-1/2 month low, with investorsawaiting the end of a four-day closed-door policy meeting of theChinese Communist Party on Tuesday that will set the economicagenda for the next decade.

China's annual inflation climbed to an eight-month high inOctober, fuelling market worries about policy tightening asfactory output and investment data pointed to signs ofstabilisation in the world's second-largest economy.


The dollar was steady at 99.005 yen, not far from aseven-week high of 99.41 yen reached last Thursday, and up 0.1percent at $1.33585 to the euro, having gained 0.4percent on Friday.

Against a basket of major currencies, the dollar stood at 81.258, within striking distance to a two-month high of81.482 touched on Friday.

As the yen weakened, Japan's Nikkei benchmark climbed 1.3 percent in relatively light trade after losing 0.8percent last week.

U.S. S&P E-mini futures were little changed in Asiantrade after the Standard & Poor's 500 index advanced 1.3percent on Friday.

U.S. Treasury futures added 2 ticks after the 10-yearU.S. Treasury yield rose as much as 15 basis pointsto a four-week high of 2.763 percent on Friday.

Gold slipped 0.3 percent to about $1,284.5 an ounce,adding to Friday's 1.5 percent decline and languishing near athree-week low on worries that the Fed will soon remove itssupport for the economy.

Brent crude prices rose 0.3 percent to around $105.4a barrel, building on Friday's 1.6 percent rise, which broke athree-day run of losses and rebounded from a four-month trough.

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