STOCKS NEWS ASIA-Shares to stutter as Greece downgrade weighs

WELLINGTON, June 15 (Reuters) - Asian stocks are set for an uncertain start on Tuesday, as a downgrade of Greece's bond rating erased what had been a promising start to the week on U.S. markets.

The main U.S. indices closed between flat to 0.2 percent lower, as the market gave up early gains after Moody's Investor Service cut Greece's government bond ratings to junk status, citing risks in the bailout package for the debt-laden country.

Earlier the market had been buoyed by strong euro zone industrial data, sending the S&P 500 up more than 1 percent.

The Nasdaq was the best of the main indices, rising a fractional 0.02 percent rise, as investor appetite for chipmakers remained strong after comments that demand from China would lift the market by 6 percent or 7 percent for the next five years.

Asian stocks listed on Wall Street were 0.6 percent higher.

British and European stocks, which closed ahead of the Greece downgrade, gained as much as 1.1 percent on strength in banks and miners, although BP Plc fell more than 9 percent on doubts about the outlook for its dividend.

The euro pared earlier gains after the downgrade but was still firmer against the yen. The yen was slightly stronger against the U.S. dollar.

Japanese markets are likely to open flat, with Nikkei futures traded in Chicago just 10 points above the last closing level in Osaka.

Australian shares are set to gain, helped by firmer metal prices. Share index futures were 5 points firmer at 4,531, a 25.5 point premium to the close of the underlying S&P/ASX 200 index.



HEADLINES: > Spain sees credit squeeze, denies EU rescue bid > BP unveils new oil spill plan as shares tumble > Wall St's gains melt as Moody's cuts Greece rating > Euro-zone data lifts ADRs > Deepwater spills and short attention spans > U.S. Congress nears deal on bank trading crackdown > Microsoft's Kinect to sell Nov 4 with 15 games > EU executive eyes watchdog to control speculators > Fed's Bullard: strong global recovery under way > U.S. May prices seen weak on energy > Afghan mine sector sparkles but problems abound > China's AgBank eyes record $23 billion IPO > Softbank's Zynga stake to boost Asia focus-Nikkei > JAL sees 1 trln-plus yen in restructuring- Nikkei

KEY INDEXES pct change

Bank of New York Asia ADR index +0.60

Dow Jones Industrial Average -0.20

Nasdaq Composite Index +0.02

Nikkei futures in Chicago 9,890

Nikkei futures in Osaka 9,880

TOP ASIA EVENTS:

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strategy

HONG KONG - Yue Yuen Industrial (Holdings) Ltd

H1 results.

AUSTRALIA - Reserve Bank of Australia minutes of June meeting


(Reporting by Adrian Bathgate)
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