Asian shares fell on Monday as investors paused to assess the effect of strong U.S. jobs data, which scaled back expectations of more easing ahead of this week's Federal Reserve meeting, while uncertainty over Chinese growth also weighed on sentiment.
The MSCI Asia Pacific ex-Japan index eased 0.8% after rising as much as 1.3% on Friday. The index has risen about 12% this year.
Indian stocks bucked the trend and rose 0.6%, after India on Friday cut the cash reserve ratio requirement for banks sooner and more sharply than expected, raising the odds for an interest rate cut this week.
Japan's Nikkei average erased earlier gains and fell 0.2%, retreating from a fresh seven-month high reached earlier. The Nikkei is up about 18% this year.
The dollar hovered around three-week highs against a basket of major currencies. It held close to Friday's near 11-month high of 82.64 yen. The euro eased 0.2% to $1.3090 , after hitting its lowest in about a month of $1.3085 earlier.
"The markets were due for a correction after rising too strongly so far, bringing prices to levels which wouldn't be sustainable," said Naohiro Niimura, a partner at research and consulting firm Market Risk Advisory Co.
Concerns about Europe's debt crisis will not fade away with the completion of the Greece debt swap deal, but the focus was shifting to global growth and monetary policy, analysts said.
Financial spreadbetters expected major European markets to open flat to 0.1% lower.
CHINA UNCERTAINTY
Data on Friday showing solid growth in U.S. employment suggested the world's largest economy was strengthening and in less need of further monetary stimulus from the Fed, which holds its policy meeting on Tuesday.
Economic conditions elsewhere were less rosy or clear-cut.
China's trade balance data over the weekend showed the largest deficit in at least a decade, following recent reports that inflation cooled in February while retail sales and industrial output fell below forecast.
Brent crude, which has risen 17% this year, eased 0.5% to $125.35 a barrel while U.S. crude shed 0.6% to $106.75, as traders took profit after last week's gains and China's trade deficit fanned concerns slowing exports from the world's second largest economy will hurt fuel demand.
Copper, up 11% this year, fell 0.6% to $8,450 a tonne.
In a wide-ranging statement highlighting its goals for 2012, the People's Bank of China (PBOC) promised to reduce state control over China's interest rates and currency markets to allow market forces to have a bigger play.
It also said Beijing has ample room to further cut the reserve requirement ratio for banks, adding that any decision would be based on market liquidity conditions and foreign exchange inflows.
