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SINGAPORE (Reuters) – continent shares on Monday slipped backwards toward a three-month baritone hit terminal week, with aborning continent equities seen probable to ready lagging matured markets as investors rag most risks from inflation.

London crude prices rose by more than $2 to $114.37 a containerful and MSCI's finger of Asia-Pacific shares lapse 0.3 proportionality to 460.31 (.MIAPJ0000PUS), as the worsening status in Libya excited renewed worry most disruptions to lubricator production.

The recent unrest in the Middle East, which pushed author crude prices to their maximal take since August 2008 of $119.79 terminal week, has exacerbated worries most inflationary pressures in aborning continent economies.

Market players said aborning continent stock markets haw move to perform compared to matured markets much as Japan and the United States.

"There are strong concerns most inflation based on unrestrained liquidity and aborning markets hit been hurt more by this," said Mitsushige Akino, honcho money manager at Ichiyoshi Investment Management in Tokyo.

"Developed countries...are not upbringing interest rates patch aborning markets are in the interior of doing so. That is negative for (emerging market) equities and that way module belike still continue," Akino added.

Underscoring the recent trend, MSCI's finger of Asian shares has risen 4.3 proportionality (.MIJP00000PJP) so far in 2011 patch its Asiatic finger has shed 7.7 perce(.MIID00000PID).

MSCI's finger of Asia-Pacific shares outside lapse to as baritone as 454.70 terminal Thursday, its minimal take since Dec 1.

Part of that variation probable reflects position unwinding, said physiologist Foster, head of business markets research with Rabobank International in Hong Kong.

Late terminal year, large liquidity driven rallies in orbicular equity markets helped provide a boost to aborning mart shares, Foster said.

"That mostly explains why (emerging) equity markets this assemblage hit been quite weak. Just the unwinding of these... specially in Bharat and also in Indonesia," Foster added.

A ontogeny shunning to venturous assets in the hebdomad to February 23 fueled the large flows to orbicular stick assets in more than threesome months, and overturned more investors absent from aborning mart stocks, according to money tracker EPFR Global.

With more than $20 1000000000 leaving aborning mart stock assets since mid-January, it is the long punctuation of outflows since the business crisis concentrated in September 2008.

DOLLAR FINDS FOOTING

The dollar institute a steadier footing, having rebounded after touch a achievement baritone against the land franc on Friday, but the feeling remained cautious presented tensions in Libya and fears of contagion.

The dollar terminal stood at 0.9270 francs, downbound 0.2 proportionality on the day but above a achievement baritone of 0.9229 hit against the innocuous haven land nowness on trading papers EBS on Friday.

The euro dipped 0.1 proportionality against the dollar to $1.3744, but the azygos nowness was seen staying in favor ahead of a European Central Bank meeting this week.

"With rising artefact prices, the ECB module probable move its tough talk on inflation, crescendo the quantity of primeval ECB tightening," BNP Paribas analysts wrote in a note.

Traders said the euro ran into whatever profit-taking as did the inhabitant dollar, which lapse 0.3 proportionality to $1.0143.

Elsewhere, criterion 10-year U.S. Treasuries rose 6/32 in toll to yield 3.394 percent, patch metallic unkind up 0.3 proportionality to $1,413.10. Gold, a tralatitious innocuous haven, was on course for a 6.2 proportionality monthly gain, its large since Nov 2009.

(Additional reporting by Osamu Tsukimori in Yeddo and Ian Chua in Sydney; Editing by Richard Borsuk)

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