(Adds comments, details)

  By Victoria Thieberger

  Nov 7 (Reuters) - Australian shares dipped 0.2 percent on Monday in light volume, as two major banks traded without dividend rights and worries about the euro zone's apparently endless debt crisis overshadowed a Greek deal to form a new government.

  Shares in Westpac and Macquarie Group ended sharply lower, trading without the rights to their dividends. They lost 4.4 percent and 4.0 percent respectively.

  Computershare Ltd shares surged by the most in seven years, up 13.6 percent to A$8.29, after the share registry confirmed it would proceed with the $550 million acquisition of BNY Mellon's shareowner services unit after receiving antitrust clearance. The deal was first announced in April.

  But financial markets were still focused on the G20's inability to secure new funds to ease the euro zone crisis, and the ability of Italy to make tough fiscal reforms.

  " There is still a lot of mistrust. Markets have seen various plans and agreements have been put in place, only for something to come from left field and unseat it," said RBS Morgans senior equities adviser Tony Russell.

  Russell said investors were also profit-taking after a sharp gain on Friday, amid worries about the corporate profits outlook for 2012 as the annual shareholders meeting season progresses.

  The benchmark S& P/ASX 200 index lost 7.7 points to 4,273.4, having risen 2.6 percent on Friday.

  But volume was one of the lightest days this year and just half an average day.

  New Zealand's benchmark NZX 50 index rose 0.3 percent to 3,342.2.

  Shares in Orica Ltd , the world's top maker of commercial explosives, jumped after the company beat forecasts for full-year profit, and was optimistic that 2012 would be less challenging than the year just-ended.

  The shares gained 4.6 percent to A$25.41.

  Bread and baking goods supplier Goodman Fielder added 2.8 percent on news it has successfully refinanced A$500 million in debt.

  Centro Properties met with a 16 percent rise in its lowly share price to A$0.042 after a report in The Age newspaper said the upcoming refinancing and restructuring with affiliate Centro Retail would make the group a A$4 billion takeover target for other property trusts. (Editing by Lincoln Feast)

* Wheat futures volumes surge to over 11,000 contracts

  * Trading had slowed to a trickle after MF Global collapse

  * ASX says continuing to manage exposure to MF Global

  * Adminstrator expects to provide more information by Friday (Updates trading volumes, administrator's comment)

  By Bruce Hextall

  SYDNEY, Nov 7 (Reuters) - Traded volumes on Australian wheat futures spiked on Monday after slowing to a trickle last week in the wake of the collapse of U.S. futures broker MF Global Holdings Ltd , the key market maker in Australian grain futures.

  More than 8,000 eastern milling wheat contracts < 0#YVW:> were traded by late afternoon Sydney time, including trades during the Friday night session.

  Also more than 3,000 Western Australia Wheat futures < 0#YWK:> had traded on bourse operator ASX Ltd's 24 hour agricultural commodities futures trading platform.

  Average volumes before MF Global's collapse were around 1,800 combined contracts per day, according to ASX.

  For the most active January milling wheat contract the volume jumped to 6,179 lots by 0414 GMT, the highest ever .

  Traders said the volumes traded on the ASX 24 platform on Monday reflected pent-up hedge demand following inactivity in the wake of the collapse of MF Global.

  " From the volumes traded it probably implies that some people are looking to re-establish positions they had on as well as some pent-up demand," said Brett Cooper, senior market manager with INTL FCStone Australia, adding that the pick-up in volumes was encouraging.

 

  It followed the largest futures operator in the United States, the CME Group, issuing a notice of 'hold' to its clients late Sunday for any accounts transferred from MF Global.

  CME said it was verifying the collateral allocated to each customer involved in the bulk transfer of positions from the futures brokerage.

  The ASX suspended trading of agricultural futures last Tuesday after MF Global in the United States applied for bankruptcy protection.

  The suspension was lifted on Wednesday but traders last week were reluctant to step into the gap left by MF Global and make a market, wary of uncertainty created by the firm's demise.

  MF Global's Australian operations were placed under the administration of accountancy firm Deloitte.

  The ASX started closing out MF Global's positions last week.

  " It effectively means the clients of MFGA (MF Global Australia) have no agricultural hedge positions in market," said Chris Campbell, partner at Deloitte and administrator of MFGA.

  Campbell said the ASX was still provide the information regarding the close out of all MFGA's positions.

  " They haven't finished the process and they haven't given me the information and more importantly when we get the cash," said Campbell.

  Once the data was provided Campbell said that would be reconciled with the cash received by the administrator.

  " With futures in particular , it's fairly complicated process actually putting that cash back into the clients' accounts," he said.

  Campbell said he hoped to be in a position to be able provide more information to MF Global's creditors by Friday.

 

  ASX advised MF Global clients wanting to continue to trade ASX 24 futures to enter new client agreements with other futures broking firms trading on the ASX 24 platform.

  The bourse operator late last week issued a discussion paper to market participates, marked " strictly confidential" , which sources said had proposed a tender process for grains and wool futures held by its clearing house on behalf of MF Global.

  " Obviously we've continued to communicate with relevant market stakeholders to keep them informed about what ASX's actions are," said Bland, but declined to comment on the discussion paper.

  ASX is continuing to manage the exposure its clearing house had to MF Global.

  " ASX's clearing house is continuing to actively manage its exposure to MF Global which essentially means closing out or eliminating positions," Bland told Reuters.

  Exchange clearing houses guarantee both sides of an exchange-based trade, storing collateral posted by registered brokers that provides a cushion against large trading losses or potential defaults.

  In Australia, MF Global was also an active player in the high leverage contract-for-difference (CFD) market, involved in placing bets on foreign exchange and share movements. (Editing by James Regan)

* KOSPI takes a breather as G20 disappoints

  * Daum, SK Tel shine on Google hopes

  * LG Elec, Display rebound after sharp falls last week

  By Jungyoun Park

  SEOUL, Nov 7 (Reuters) - Seoul shares gave up initial modest gains and ended slightly lower on Monday after strong rises in the previous session, with investors disappointed by a lack of progress at the G20 summit and U.S. economic data.

  " The market moved in a narrow range amid a lack of compelling factors to lift it further from its current level. We expect shares to be rangebound this week," said Cho Sung-joon, a market analyst at NH Investment & Securities.

  The Korea Composite Stock Price Index (KOSPI) finished down 0.48 percent at 1,919.10 points.

  The euro zone won verbal support but no new money at G20 summit on Friday for its tortured efforts to overcome a sovereign debt crisis, while Italy was effectively put under IMF supervision.

  U.S. hiring slowed in October but the unemployment rate hit a six-month low and job gains in the prior two months were stronger than previously thought, pointing to some improvement in the still-weak labor market.

  Falls were led by automakers and refiners, with Kia Motors shedding 1.4 percent and SK Innovation down 1.2 percent.

  Samsung Electronics fell 1.2 percent to 993,000 won after rallying in the previous session to touch the 1 million won milestone for the first time in nine months and flirting with a previous all-time high.

  LG Electronics and LG Display climbed 1.8 percent and 3.7 percent respectively after sharp falls in the previous session on news of LG Elec's rights offer.

  Shares in Daum Communications advanced 2.5 percent amid renewed speculation that Google may make an offer for the web portal as Google chairman Eric Schmidt visited the country, despite Daum denying the rumours.

  " Hopes that Google will acquire Daum are strengthening as (rival) NHN cements its lead in the local market ... a merger with Google could help Daum catch up," said Chung Woo-cheol, an analyst at Mirae Asset Securities.

  SK Telecom rallied more than 4 percent after Schmidt met with SK Telecom's president to discuss possible areas of collaboration, according to a statement.

  Hopes of new orders lifted nuclear power related issues.

  Nuclear power plant designer KEPCO Engineering & Construction spiked by the daily limit of 15 percent and KEPCO Plant Service & Engineering , which maintains and operates nuclear facilities, jumped 6.8 percent.

  Defensive issues also outperformed, with cosmetics maker Amorepacific gaining 2.5 percent and CJ Corp , a food conglomerate, climbing 0.6 percent.

  The KOSPI 200 index ended down 0.62 percent at 250.78 points and the junior Kosdaq market rose 1.39 percent to 509.77 points.

 

  Move on day -0.48 percent

  12-month high 2,231.47 27 April 2011

  12-month low 1,644.11 26 September 2011

  Change on yr -6.43 percent

  All-time high 2,231.47 27 April 2011

  All-time low 93.10 6 January 1981 (Editing by Jonathan Hopfner)

By Chikako Mogi

  TOKYO (Reuters) - Asian shares struggled and credit markets weakened on Monday, with investors still nervous despite the agreement on formation of a new Greek unity government intent on avoiding imminent debt default.

  Investors were also shifting their attention to another debt-burdened country, Italy, which faces political instability as well, putting it under pressure to swiftly restore its credibility on financial markets.

  MSCI's broadest index of Asia Pacific shares outside Japan, which traded between plus 0.2 percent and minus 0.6 percent, was down 0.2 percent while Japan's Nikkei stock average ended down 0.39 percent.

  U.S. stock index futures reversed course and fell into negative territory after opening higher, as market players refocused on a lack of commitment to details that are crucial in making the Greek bailout program work.

  The spreads on the iTraxx Asia ex-Japan investment grade index, a gauge of investor appetite for risk, widened by 4 basis points as equities languished.

  " Credit market spreads are a bit wider, while equities are mixed, because debt issues may matter more for Europe and the credit markets are more bearish over these kinds of uncertainties," said Frances Cheung, senior strategist for Asia ex-Japan at Credit Agricole CIB in Hong Kong.

  " We'll watch out for any Italian debt auctions to see where demand is coming from," she said, questioning the ability of some euro zone countries to sustain themselves without selling their own debts.

  Italy is the third largest economy in the euro zone with the biggest government bond market. With Italy's debt levels stuck at 120 percent of GDP, the country's debt problems would pose a much bigger risk to the financial markets than Greece does.

  Italy's borrowing costs have been rising sharply over the past several weeks, with the Italian 10-year government bond yields rising about 85 basis points since late September.

  Italian 10-year government bond yields hit record highs of around 6.4 percent on Friday, expanding the spread of Italian 10-year yields over Bunds to a new lifetime high.

  The cost of insuring Italian debt against default has also shot up, with five-year Italian CDS nearly tripling since the beginning of the third quarter to around 500 basis points on growing concerns over the country's fiscal strains just as Greece was getting battered in the market over its debt crisis.

  European shares were expected gain modestly, with financial bookmakers calling for Britain's FTSE 100 index to open up 0.3 percent, Germany's DAX to rise 0.5 percent, and France's CAC-40 to gain about 0.5 percent.

  With many trading centres in Asia on holiday on Monday, including India, Malaysia, Philippines and Singapore, price actions may not necessarily be all that representative given thin volumes, analysts said.

  GREEK WOES

  Greek Prime Minister George Papandreou and opposition leader Antonis Samaras agreed on a new coalition government to approve the bailout plan, which requires painful fiscal reform, before elections.

  Papandreou and Samaras had been scrambling to reach a deal before finance ministers of euro countries meet in Brussels later on Monday, to show that Greece is serious about taking steps needed to stave off bankruptcy.

  Political wrangling in Greece had sparked panic in global financial markets on fears that it would fail to save the country from defaulting and to stop the sovereign debt crisis from spreading to other countries in the euro zone.

  While Greece has for now managed to stay on track to reduce its huge debt, market jitters remain over a lack of funding to beef up the bailout fund after the euro zone failed to get any concrete pledge for new money at a G20 summit on Friday.

  " We believe what will matter more for markets in the near term is the relatively disappointing outcome of the G20 meeting, given the lack of progress on backstop facilities," Barclays Capital analysts said in a report.

  " Any further rise in Italian yields and spreads would make us very cautious about cross-market implications for risk assets," they said.

  Italian Prime Minister Silvio Berlusconi said his country would welcome quarterly monitoring by the International Monetary Fund of pension and labour market reforms and privatisations he had promised to implement.

  Leaders of the world's major economies deferred until next year any move to provide more crisis-fighting resources to the

  IMF.

  Euro zone officials said the region's finance ministers will accelerate work on strengthening their bailout fund to enhance its market credibility by the end of November, a month early, as concern grows about Italy.

  SAFETY BID RETURNS

  Hong Kong shares opened slightly higher but then slipped to be off 0.1 percent, while the Shanghai Composite Index fell 0.4 percent.

  Hong Kong and China shares were weighed down by financials as investors prepared for key economic data this week including the latest monthly inflation data from China on Wednesday.

  China's data is expected to show continued easing in price pressures as growth moderates, underpinning talk the authorities are likely to loosen their stance on monetary policy.

  The euro fell 0.5 percent to $1.3760 against the dollar, retreating from an earlier high of $1.3837, while the Australian dollar, which often is seen as a gauge for risk appetite given its close link to commodities, dropped 0.6 percent.

  " For now, they've managed to stave off any panic, but it's not looking positive for them," said Grant Turley, strategist at ANZ in Sydney. " It feels like a low conviction, fatigued market at this point in time."

  A retreat in investor appetite for riskier assets helped safe-haven government bonds, with U.S. Treasury futures flat from late New York levels on Friday of 130-08/32, after falling to around 130 in early Asia on Monday.

  Spot gold rose 1 percent to its highest level since September 22 of around $1,771 an ounce on Monday, as uncertainties over the euro zone debt crisis renewed bids for safe-haven assets.

  Data on Friday showed money managers, including hedge funds and other large speculators, raised their bullish bets in gold futures and options in the week to November 1, a trend traders and analysts believe will remain intact.

HONG KONG, Nov 4 (Reuters) - Hong Kong shares rebounded on Friday, recovering almost all of this week's decline on sustained strength in locally listed mainland Chinese companies and led by a 7.3 percent jump in top insurer China Life Insurance Co Ltd .

  The Hang Seng Index ended the day up 3.12 percent at 19,842.79, bringing its loss for the week to 0.88 percent. At its lowest point on Wednesday the index was down nearly 5 percent.

  The Hong Kong market was helped by strength in locally listed mainland companies. The China Enteprises index rose 3.99 percent on the day, finishing the week up 0.8 percent.

  On the mainland, the Shanghai Composite Index closed up 0.81 percent at 2,528.29, a two-month high.

 

  HIGHLIGHTS:

  * Oil producers rallied on a report in the China Securities Journal that said the country's oil companies may be allowed to adjust refined oil product prices by themselves in line with a government-set pricing formula.

  China Petroleum & Chemical Corp (Sinopec) , Asia's top refiner, jumped 8.3 percent. PetroChina Co Ltd rose 3.9 percent in Hong Kong.

  * Businesses most sensitive to China's domestic stock markets, such as insurers that hold shares in investment portfolios, and brokerages, staged a strong rebound this week. China Life posted a 12.8 percent rise this week. China Life's Hong Kong-listed shares are up 32.6 percent in the past month. Following the lead of their larger rival, Ping An Insurance (Group) Co of China Ltd ended the week up 5.5 percent while rival China Pacific Insurance (Group) Co Ltd rose 6.7 percent on the week.

  * Optimism about a rally in Shanghai heading into year-end saw another session of gains amid strong volume for the major China-related ETF in Hong Kong. The iShares A50 China Tracker rose 1.7 percent on healthy volume.

  One cause of concern, however, was that premium of the ETF unit's price to net asset value per share rose for a third successive session, hitting nearly 9 percent, the highest since early August and suggesting they were becoming expensive relative to the value of the underlying shares. (Reporting by Vikram Subhedar Editing by Chris Lewis)

SHANGHAI, Nov 7 (Reuters) - China stocks ended down 0.7 percent on Monday, pulling back from a 2-month high, dragged down by property shares as investors turned bearish on the real estate market.

  The official Shanghai Securities News said on Monday that China's property market appeared to have come to a turning point, going from bullish to bearish, after a series of cooling steps were implemented by the government since April last year.

  The Shanghai Composite Index ended at 2,509.8 points after rising 2 percent over the week last week.

  The Chinese government has repeatedly said it would firmly keep in place tightening measures to control property price rises and let prices return to reasonable levels. (Reporting by Chen Yixin and Jacqueline Wong)

TOKYO, Nov 7 (Reuters) - Japanese government bonds were almost flat on Monday after erasing small losses from earlier as investors are unconvinced that the prospect of a unity government in Greece is enough to stop a deterioration in the euro zone's debt crisis.

 

  * Ten-year JGB futures stood at 142.69, up 0.02 point < 2JGBv1> at midday, having recovered from a fall to 142.61.

 

  * JGBs dipped after Greek politicians sealed a deal to form a coalition government to approve a euro zone bailout before holding an election in February, breaking an impasse after the EU demanded a rapid end to political bickering in the country.

 

  * While that eased immediate fears that the country could face the risk of a disorderly default, lingering concerns over a continued sell-off in Italian bonds and a lack of details on Greece's new government kept many market players from selling JGBs for now.

 

  * The JGB yield curve steepened as " superlong" bonds came under pressure ahead of two auctions of those maturities planned this week.

 

  * The 10-year cash bond yield rose 0.5 basis point to 0.990 percent , while the 20-year yield climbed 1.0 basis point to 1.735 percent. The 30-year yield gained 1.5 basis points to 1.945 percent .

 

  * The spread between 10 and 30-year yields stood at 95.5 basis points, up from a low of 87.5 basis points marked in late September, but sill a tad below a peak of 98 basis points hit three times between August and September. (Reporting by Hideyuki Sano Editing by Joseph Radford)

By Jan Strupczewski

  BRUSSELS (Reuters) - Euro zone finance ministers will speed up work on strengthening their bailout fund on Monday to enhance its market credibility by the end of November, a month early, as concern grows about Italy, euro zone officials said.

  Euro zone leaders agreed last week to scale up the 440 billion euro (£378.3 billion) European Financial Stability Facility (EFSF) to convince markets they can prevent Italy and Spain from being swept up by the sovereign debt crisis, which has already claimed Greece, Ireland and Portugal.

  The agreement of the leaders of the 17 countries using the euro to leverage the EFSF by 4-5 times still needs, however, technical details to be provided by finance ministers before the EFSF's bigger firepower can be demonstrated to markets.

  " The original plan was to have the details ready by the end of the year," one euro zone official said.

  " But there is a clear sense that we have to accelerate the finalisation of the technical details, because tensions in the markets have increased after the last Greek episode and we don't know what may happen next," the official said.

  " Considering the pressure on countries like Italy, which presents an enormous challenge, there is a sense we need to have it (leveraged EFSF) ready already by the end of this month," the official said.

  Greece sparked panic in the market and shocked fellow euro zone countries by announcing last Monday it would call a referendum to seek citizens' approval for an emergency financing package that euro zone governments, private investors and the IMF agreed on after tortuous talks on October 27.

  Greece has since dropped the referendum plan and its politicians agreed on Sunday to form a unity government to enact the unpopular 130 billion euro package.

  But markets are worried about how the euro zone debt crisis will develop and yields of Italy's benchmark 10-year bonds rose to 6.39 percent on Friday, from 5.88 percent on October 27.

  Many economists believe that once yields rise above 7 percent, the financing costs for a government become too high and a country is forced to ask for a bailout.

  " The pressure on Italy is quite significant if you look at how the yields have increased over the last days -- it is worrying," a second euro zone official said.

  " All the parties agree there is a need to accelerate the work on the leveraging of the EFSF," the official said.

  ITALY, GREECE TO REPORT TO EUROGROUP

  Italy's Finance Minister Giulio Tremonti will tell his fellow euro zone colleagues how Rome plans to implement a list of reform commitments made in late October, including public asset sales, a change to employment laws and a pension reform.

  The implementation of the reforms, which are to boost Italy's weak growth and make it a more credible borrower in the eyes of the market, will also be monitored by the International Monetary Fund.

  Greek Finance Minister Evangelos Venizelos is to brief the Eurogroup on the latest developments in Athens, where Prime Minister George Papandreou agreed to step down to allow a unity government to be formed to push through the bailout deal.

  Party leaders have yet to announce who will replace him.

  The European Union wants the Greek parliament to approve the emergency financing package for Athens agreed on October 27, before any more euro zone loans are disbursed to Greece.

  Athens must get the next, 8 billion euro tranche of aid before mid-December, if it is to stave off bankruptcy.

  " After the presentation from Mr. Venizelos there will be a discussion on what will happen with the next tranche of aid. As long as there is uncertainty about the commitment of the Greek authorities, the money cannot be paid," the official said.

  More input to the discussions on Monday on EFSF leveraging will come from the summit of G20 biggest economies in Cannes on Nov 3-4, where interest in details of the idea was high, and from a visit to Asia by EFSF Chief Executive Klaus Regling.

  Existing and planned EFSF lending commitments leave around 250 billion euros in the fund, which the euro zone wants leveraged to a headline figure of around 1.0 trillion euros.

  Euro zone leaders want this done by offering first-loss guarantees to purchasers of euro zone debt in the primary market or via a special purpose vehicle that would be set up in the coming weeks and which would aim to attract investment from countries like China or Brazil, possibly via the International Monetary Fund.

  IMF ROLE IN EFSF LEVERAGING

  An IMF official, possibly the head of the fund's European department Antonio Borges, will take part in the meeting of the Eurogroup on Monday.

  " The involvement of the IMF in EFSF leveraging is not yet decided, but it is important that they can have a say," the first official said.

  Markets had hoped that some cash rich emerging market powers like China or Brazil would invest in the EFSF's special purpose vehicle and were disappointed on Friday when German Chancellor Angela Merkel said after a meeting of leaders of the G20 biggest economies that few countries were ready to contribute.

  But some euro zone officials said the lack of concrete investment declarations so far could have been due to lack of agreed details about the project, since many G20 leaders were interested in the idea and asking for details.

  Some countries could be more willing to invest in such a venture through the IMF, rather than directly, officials said.

  " Frankly, it looks more like our international partners want IMF involvement, because IMF involvement is a way for others to get involved," the first official said.

* Market expects stable IRS rate

  * 7-day repo rate edges up on RRR payment

  * 7-day repo rate up 8 bps at 3.5801 percent

  By Chen Yixin and Jacqueline Wong

  SHANGHAI, Nov 7 (Reuters) - China's interest rate swaps were little changed on Monday due to ample liquidity and investor expectations of possibly a slight easing in monetary policy as economic growth slows.

  The one-year IRS was unchanged at 3.1900 percent while the benchmark five-year IRS inched up 2 bps at 3.37000 percent and 10-year IRS was flat at 3.4700 percent.

  Dealers expected rates could remain stable for a while on increasing signs that the government was prepared to fine-tune monetary policy towards an easier stance as global economic woes appear to be dragging on China's growth.

  " The rate has hovered around a low level for a while on expectation of no policy tightening," said a dealer at a Chinese commercial bank in Shanghai. " We don't think it has room to fall sharply unless the central further eases policy."

  Money market rates inched up as big banks rushed to meet regular payments of reserve requirements, but ample liquidity limited sharp gains.

  " Money is quite ample," said the Chinese bank dealer. " And we expect the situation is unlikely to change in the near term as the central bank has strong intentions to keep the market supplied and has injected a large amount of funds."

  The key benchmark seven-day government bond repurchase rate rose 8 basis points to 3.5801 percent, compared with Friday's 3.5003 percent.

  The shortest overnight repo rate was up at 3.1082 percent, while the 14-day repo rate edged up to 3.6261 percent from 3.6238 percent.

  Current Prev close Change

  (pct) (bps) 7-day repo 3.5801 3.5003 + 7.98 7-day SHIBOR 3.5683 3.4983 + 7.00 Note: Repo rate is weighted average.

  ($1 = 6.36 Yuan)

By Dina Kyriakidou and Paul Taylor

  ATHENS/PARIS (Reuters) - Greek Prime Minister George Papandreou and conservative opposition leader Antonis Samaras agreed on Sunday on a new coalition government to approve a euro zone bailout deal before calling elections, the office of the president said.

  Papandreou will not lead the new administration, the office said in a statement issued after the European Union gave Greece 24 hours to explain how it will form a unity government to enact its 130 billion euro emergency funding deal.

  The two men sealed the deal after talks led by President Karolos Papoulias, but it remained sketchy as they have yet to agree even on who will be the new prime minister to lead Greece through its economic, political and social crisis.

  " Tomorrow there will be new communication between the prime minister and the opposition leader on who will be the leader of the new government," the statement said.

  The statement also made no mention of how long the interim government would last before it calls early elections.

  Papandreou and Samaras had been scrambling to hammer out a deal before a meeting by finance ministers of euro countries in Brussels on Monday, to show that Greece is serious about taking steps needed to stave off bankruptcy.

  One political analyst welcomed the deal, struck after doubts began to emerge over whether Greece could stay in the euro zone.

  " I'm relieved. It's a very positive development. It was imposed by society and the need to stay in the euro zone, and it will not be overturned," said Costas Panagopoulos, head of ALCO polling agency.

  The EU has made clear it wants a unity government in Greece to ensure consensus support for reform and restore confidence after a week that saw Papandreou first call for a referendum on the bailout and then backtrack under international pressure.

  Earlier European Economic and Monetary Affairs Commissioner Olli Rehn told Reuters finance ministers from countries that use the single currency would insist on hearing a plan for a unity government from their Greek colleague Evangelos Venizelos at Monday's meeting in Brussels.

  " We have called for a national unity government and remain persuaded that it is the convincing way of restoring confidence and meeting the commitments," he told Reuters. " We need a convincing report on this by Finance Minister Venizelos tomorrow in the Eurogroup."

WHAT: Asia Pacific Economic Cooperation meetings

  WHEN: Ministerial meetings Nov. 10, leaders 12-13

  * US presses lowering trade barriers on green technologies

  * Japan may join talks on Trans Pacific Partnership

  * US sees to bolster its role in Asia-Pacific

  By Stella Dawson

  HONOLULU, Nov 7 (Reuters) - Leaders of major nations bordering the Pacific expect to make progress at APEC meetings this week on building a regional free trade area and a green initiative, steps that would help foster world economic growth unlike the tumultuous outcome of G20 summit.

  Asia-Pacific countries are among the fastest growing in the world with 2.5 billion consumers accounting for 60 percent of global income, offering huge trade opportunities.

  But discussions among APEC's 21 members on free trade have languished in recent years while the United States was consumed by the financial cleanup from the 2007-2008 credit bust and its military engagements in Iraq and Afghanistan.

  China meanwhile has moved ahead with a series of multi-nation trade agreements throughout Asia and has flexed its military muscle in the South China Sea.

  The APEC meetings, to be held from Nov. 9-13 in the city of U.S. President Barack Obama's birth, will give him an opportunity to relaunch the United States into the Asia-Pacific century as it confronts rising competition from China.

  U.S. trade officials said they are close to agreeing on a green growth initiative, which would cut tariffs on environmental goods and services, such as solar panels and wind turbines, to help promote clean technologies.

  But the primary U.S. initiative is the Trans Pacific Partnership, or TPP, a trade pact under negotiation among nine nations on the sidelines of APEC that would inject the U.S. into the heart of Asia's regional trade architecture and provide a counterweight to China. It also would allow Obama to say he is opening paths to new job creation.

  Right now there are competing pathways toward achieving regional trade integration -- one revolving around China and other Asian nations the other focused around the United States and TPP.

  If the United States can secure a detailed outline for completing TPP talks, and attract Japan to join in, it would mark a resurgence of U.S. leadership in the region and set aside concerns that it could cede the area to China.

  " We don't want to see an architecture of trade arrangements and political arrangements in Asia that draw a line down the middle of the Pacific," said Michael Green, senior adviser at the Center for Strategic and International Studies in Washington.

  CHINA AND JAPAN

  The U.S. is close to completing the broad TPP outlines with Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam.

  Japan, the world's third largest economy, may announce this week it wants to join the talks. Prime Minister Yoshihiko Noda Noda has signalled he is keen to join the TPP talks to spur growth in a country with a shrinking and graying population. He will hold talks with Obama in Honolulu.

  Japanese industries have urged the government to participate so as not to fall too far behind rival South Korea, but the farming lobby says it would devastate Japan's agriculture, which has long been protected by high tariffs.

  Hisashi Yamada, chief economist at Japan Research Institute, said failure to join would be even worse. " Not promoting free trade agreements would be negative for the Japanese economy, which is already facing the hollowing out of industry," said Hisashi Yamada, chief economist at Japan Research Institute.

  Peter Scherr, executive vice president for global government relations at JPMorgan Chase, said if Japan joins it would be a " major deal." It would elevate the U.S.-led talks and bolster APEC as a negotiating forum, signifying the importance of regional deals as an alternate path with the Doha round of world trade talks all but dead.

  A breakthrough also would contrast with last week's G20 summit, where world leaders failed to offer any new remedies for reinvigorating a world economy still badly scarred from the financial crisis. The G20 meeting was subsumed by the chaos of the European debt crisis and trying to prevent a messy default by Greece.

  China is interested in the idea of free trade in the Asia Pacific, though it would like to consider regional variations and may well be uneasy about joining talks on the TPP that are driven by the United States that may require further market opening measures.

  " We have an open attitude about initiatives beneficial to Asia-Pacific economic integration, including the Trans-Pacific Partnership agreement," said China's Foreign Ministry spokeswoman Jiang Yu.

  " Whether we will join the TPP, we are closely following the development regarding the agreement, and are willing to stay in contact with other member countries."

  Meanwhile, China will keep working on regional trade initiatives, said Li Wentao, professor at Nankai University's APEC Study Center in Tianjin, China, though progress is halting. Talks with Japan and South Korea are proving more feasible but others such as those with Australia face stumbling blocks, he said. (Editing by Christopher Wilson)

By Lefteris Papadimas and Harry Papachristou

  ATHENS (Reuters) - Greek Prime Minister George Papandreou sealed a deal with the opposition on a crisis coalition to approve an international bailout, but details remain thin despite an EU ultimatum for Athens to get serious about tackling its huge problems.

  With Greece due to run out of money in a few weeks, the European Union told its bickering parties to explain by Monday evening how they would form a unity government to enact the 130 billion euro (£111.7 billion) emergency funding package.

  Papandreou, who sealed his fate last week with a disastrous attempt to call a referendum on the bailout, will stand down when the new government takes over, the office of the Greek president said.

  But otherwise he and conservative leader Antonis Samaras came up with the bare minimum to satisfy Brussels, and they must still agree on Monday who becomes the next prime minister to lead a nation which is destabilising the entire euro zone.

  Papandreou's side trumpeted the agreement, reached late on Sunday at talks led by President Karolos Papoulias. " Today was a historic day for Greece," government spokesman Ilias Mossialos said, adding that the new coalition would be sworn in and hold a confidence vote within a week, if all went to plan.

  Others were less charitable. " I'm afraid the new government will very soon turn out to be problematic," said Stefanos Manos, a former conservative finance minister.

  A SUITABLE DATE

  The new coalition has to win parliamentary approval for the bailout before calling early elections.

  Papandreou's socialist PASOK party and the New Democracy party of Samaras agreed early on Monday that the most suitable date for the elections would be February 19 next year.

  Brussels has piled pressure on Athens to approve the bailout, a last financial lifeline for Greece, fearing that its crisis will spill into much bigger euro zone economies such as Italy and Spain -- which would be far harder to rescue.

  Papandreou and Samaras had been scrambling to reach a deal before finance ministers of euro countries meet in Brussels on Monday evening, to show that Greece is serious about taking steps needed to stave off bankruptcy.

  Earlier, European Economic and Monetary Affairs Commissioner Olli Rehn told Reuters that finance ministers from countries that use the single currency would insist on hearing a plan for a unity government from their Greek colleague Evangelos Venizelos at Monday's Eurogroup meeting.

  " We have called for a national unity government and remain persuaded that it is the convincing way of restoring confidence and meeting the commitments," he told Reuters. " We need a convincing report on this by Finance Minister Venizelos tomorrow in the Eurogroup."

  Papandreou had sought the referendum to show that harsh cuts demanded in the bailout had public support, but the risk that a " no" vote could bring about a sudden bankruptcy caused mayhem in markets and unrest in the ruling party.

  He soon ditched the idea and won a confidence vote in parliament, but only after promising to make way for the national unity coalition.

  BACK SEAT DRIVING

  The coalition deal is unlikely to calm Greek politics.

  Whoever becomes prime minister will struggle to exert their authority as the party leaders run things behind the scenes, Manos told Reuters. " The civil service won't implement any decision and everyone will be waiting for the election."

  Papandreou and Samaras -- who were once U.S. college room mates -- had to bury their deep differences and personal animosity, as Greece is deep in economic, political and social crisis, its future in the euro zone is in question, and their reputations among ordinary Greeks are at rock bottom.

  " The two leaders had no other choice. If elections were held now, nobody would turn out to vote for them," said Elias Nikolakopoulos, political science professor at Athens University.

  Many Greeks, who have suffered pay and pension cuts and massive job losses in the past two years, remained distrustful about politicians of all colours.

  " Elections won't solve any of our problems now. These parties don't represent us anymore," said Michalis Skevofylakas, 47, a teacher.

  Papandreou and Samaras are due to discuss on Monday morning who will be the new prime minister. Greek media tipped Lucas Papademos, a former deputy president of the European Central Bank, as a possible candidate.

  President Papoulias, who led the talks that produced Sunday's deal, will summon the head of all leading parties for more negotiations at 1800 GMT on Monday.

* Brent rises as high as $113.36 U.S. oil tops $94.88

  * Greece deal eases concern EU debt crisis is worsening

  * Winter demand supports prices

  * Coming Up: German Industrial output, Sep 1100 GMT

  By Manash Goswami

  SINGAPORE, Nov 7 (Reuters) - Brent crude rose above $113 on Monday, gaining for a third straight day on hopes of steady oil demand growth as Europe inches closer to contain the region's debt crisis with Greece agreeing to form a coalition government.

  Greece's politicians said on Sunday they would form a unity government to approve a euro zone bailout. Gold, base metals and stock futures rose, while the euro held steady, as fears eased of the country facing an imminent default. Oil got additional support with winter demand for heating setting in.

  " For oil, on the fundamental side, we are seeing an improvement with winter demand setting in," said Tetsu Emori, a fund manager at Astmax Co Ltd in Tokyo.

  " Overall market sentiment has also improved as worries about Greece's political uncertainty ease somewhat."

  Brent crude < LCOc1> gained $1.12 a barrel to $113.09 by 0310 GMT. It settled $1.14 higher on Friday, above its 100-day moving average of $111.13, rising for a second consecutive week.

  U.S. crude < CLc1> traded 44 cents higher at $94.70 a barrel. The contract increased 1 percent last week, posting a fifth straight weekly gain.

  U.S. crude prices would rise towards $100 a barrel if they break past $95 due to supporting factors such as winter demand, Emori said. The benchmark may rise close to $105 towards the end of the year, he said.

 

  Investors are also watching the unfolding bankruptcy of MF Global . CME Group said it was changing its margin requirements for customers of the collapsed brokerage, cutting the size of any margin calls when positions are transferred to another brokerage.

  Separately, IntercontinentalExchange Inc , which operates the London-based ICE Futures Europe, said in a statement that ICE Futures U.S. is temporarily lowering the initial margin rate for all speculative accounts to a level equal to the maintenance margin rate for all contracts.

 

  GREECE, DEMAND OUTLOOK

  Greek Prime Minister George Papandreou and opposition leader Antonis Samaras agreed on a new coalition government.

  Discussion on who would lead the new government would continue on Monday, the office of the Greek president said, after the European Union gave Greece 24 hours to show how it will enact its 130 billion euro emergency funding package.

  Crude benchmarks are finding support on concerns of supply disruptions from major producers in the Middle East and North Africa as winter demand sets in.

  Qatar's prime minister called for Arab states to meet next Saturday to weigh Syria's failure to implement a deal struck with the Arab League to end bloodshed that was touched off by the popular uprising against President Bashar al-Assad.

  Syrian forces shot dead at least 13 civilians on Sunday in a continued military assault on the restive city of Homs and in attacks on pro-democracy demonstrations that erupted after prayers marking the main Muslim feast. (Editing by Himani Sarkar)

* Hang Seng Index down 0.2 percent

  * Shanghai Composite eases 0.3 pct, off 2-mth high

  * CCB down 2.8 pct in HK after BofA stake sale report

  * China refiners, insurers extend rally in HK (Updates to midday)

  By Vikram Subhedar

  HONG KONG, Nov 7 (Reuters) - Hong Kong and China shares fell slightly on Monday, weighed down by financials as investors took some money off the table ahead of economic data this week that includes the latest inflation data from China.

  Hong Kong's Hang Seng Index was 0.15 percent lower at 19,813.12 by the midday trading break. China Construction Bank Corp , down 2.6 percent, was the biggest drag on the benchmark after a report that Bank of America Corp was considering a further stake sale.

  Turnover in Hong Kong at just over HK$30 billion was relatively light, with much of Asia closed for public holidays.

  On the mainland, the Shanghai Composite Index fell 0.31 percent, pulling back slightly from Friday's two-month high.

  " The market is likely to turn cautious on a busy macro-filled week," said a Hong Kong-based trader at an Asian brokerage, adding that the Hang Seng Index was likely to give up some of Friday's 3.1 percent bounce.

  Worries also persist about the euro zone, with the focus shifting from Greece to another debt-burdened country, Italy, where Prime Minister Silvio Berlusconi has a day left to win over waverers and see off a group of party rebels threatening to bring down his government.

  China is set to announce the latest set of monthly inflation data on Wednesday, expected to show continued easing in price pressures as growth moderates, underpinning talk that the authorities are likely to loosen their stance on monetary policy.

  While cuts in interest rates or bank reserve requirements are unlikely, marginal steps taken by the authorities such as alleviating the cash crunch faced by small and medium-sized enterprises and the railway sector have spurred hopes for a year-end rally for domestic stock markets.

  Bucking the weak trend in the broader market, the China Enterprises Index of top Hong Kong-listed mainland companies, rose 0.59 percent, outperforming the broader market as refiners and insurers continued to attract investor interest.

  Analysts at Goldman Sachs have recommended investors position themselves for a relative outperformance of the main H-share index versus the S& P 500 , with expectations of a 10 percent gain.

  " (The) HSCEI currently prices at about eight times forward earnings, which is quite moderate. So we think the market may be poised to continue to shift from the pricing in of hard-landing scenarios to the pricing in of some policy-driven relief and re-acceleration," said Goldman in a note.

  PetroChina Co Ltd rose 2 percent and was the top boost for the Hang Seng Index on last week's reports that Chinese oil companies may be allowed to conditionally set fuel prices, a move seen helping refining margins.

  China Petroleum & Chemical Corp (Sinopec) rose 1.9 percent at a 6-1/2 month high, following Friday's 8.3 percent jump.

  Offsetting those gains, however, was the retreat by China Construction Bank.

  Bank of America, which sold about half its 10 percent stake in CCB in August to raise about $8.3 billion, was looking to further cut its stake in the Chinese lender, according to report in Hong Kong's South China Morning Post.

  BofA's remaining stake is worth about $9.2 billion based on CCB's market value of about $187 billion and talk of sale is likely to put pressure on the stock. (Editing by Chris Lewis)

* Q3 GDP growth at 6.5 pct y/y, vs forecast 6.6 pct

  * Q3 GDP growth at 3.5 pct q/q, vs 2.9 pct in Q2

  * Manufacturing growth quickens, agriculture slows

  By Aditya Suharmoko

  JAKARTA, Nov 7 (Reuters) - Indonesia posted steady growth of 6.5 percent in the third quarter on buoyant domestic spending and private investment, and it showed few signs of slowing despite a weakening global economy.

  Annual growth in the third-quarter was slightly lower than a Reuters poll and the central bank's estimate of 6.6 percent, though in line with the first half's 6.5 percent, as domestic consumption was strong in the Ramadan festive season in August and exports surged.

  Bank Indonesia, the central, bank, forecasts Southeast Asia's biggest economy to expand 6.6 percent this year and only slow marginally to 6.5 percent in 2012 as global growth weakens.

  Still, concern over the global outlook prompted the central bank to cut its benchmark overnight rate by 25 basis points to 6.5 percent in October in a shift away from fighting inflation.

  The bank's governor said last week there was room for further rate cuts to support the G20 economy, since it saw inflation easing to 4 percent by the end of this year. Some analysts expect a second cut at a policy meeting on Thursday.

  " A further cut to a record low 6.25 percent is possible, but unnecessary given rapid growth and the potential risks to its inflation target next year," said George Worthington, economist at IFR Markets in Sydney.

 

 

 

  ROBUST CONSUMPTION

  Consumption, which fuels nearly 60 percent of the economy, remained robust in the third quarter as shown by strong car sales and loan growth. Main vehicle seller PT Astra International Tbk booked a 24 percent rise in third-quarter net profit.

  Indonesia's capital Jakarta has seen worsening traffic congestion in recent years, as growing wealth and low interest charges lead an emerging middle class to buy more cars and motorbikes, even though vehicles often get stuck for hours.

  Unlike Asian export-driven nations such as Taiwan and South Korea, Indonesia has yet to see signs of a slowdown as exports grew strongly at 46.3 percent in September. The country is the largest exporter of thermal coal, palm oil and tin.

  " The performance of domestic and private consumption has stayed intact while third quarter exports have not shown an impact from the crisis," said David Sumual, economist at Bank Central Asia in Jakarta.

  Manufacturing saw output up 6.6 percent between July and September this year, faster than the previous quarter, on expansion in the auto and chemical industries, data from Indonesia's statistics bureau shows.

  In the third quarter, agricultural growth slowed, to 2.7 percent year-on-year from 3.9 percent in the second quarter.

  But foreign direct investment rose 16 percent in the third quarter from a year ago, as the growing consumer market and abundant resources attracts firms.

  During September, Unilever < UNc.AS> said it plans to invest $750 million in factories to make personal care goods and ice cream, while Toyota said it will invest $337 million to build a new factory.

 

  INFRASTRUCTURE A RISK

  Though Indonesia has enjoyed strong annual growth of above 6 percent in recent years, poor infrastructure from roads to ports has held back its growth potential from being on par with China or India, analysts say.

  Weak infrastructure and controlling the structurally-high inflation that stems from it are hurdles for the country to return to an investment grade rating, though Fitch Ratings has said it could upgrade the country to the coveted status within the next year.

  Portfolio investors have resumed buying Indonesian stocks and bonds, after heavy sell-offs in September on global risk aversion because of eurozone debt worries. The benchmark ten-year yield is at a record low of 6.19 percent.

  The economy was little hurt by the 2008 global financial crisis, and analysts say Indonesian authorities are more prepared to face a global crisis than they were in 2008.

  Bank Indonesia has made a series of moves to protect the economy this year, from cutting back on issuance of its short-term SBI debt to requiring exporters to return funds parked overseas. On Friday, its governor said he planned to tighten regulation on how banks issue and charge for credit cards.

  " What I'm keen to see is how banks handle non-performing loans while pushing for higher loan growth to help the economy expand... there is a risk that they could face bigger non-performing loans if economic growth declines," said Christopher Kelvin, banking analyst at Danareksa Securities in Jakarta. (Additional reporting by Adriana Nina Kusuma, Rieka Rahadiana and Janeman Latul Editing by Neil Chatterjee and Richard Borsuk)