* Nikkei ends a seesaw day up 0.9 pct
* Asian stocks outside Japan dip to 1-month lows
* Yen rises vs USD and euro on turbulent Nikkei
* European stocks expected to fare better
By Ian Chua
SYDNEY, May 24 (Reuters) - Asian stocks fell to one-month
lows on Friday and the yen rebounded broadly as extreme
volatility in the Nikkei kept investors on edge.
The Nikkei has soared nearly 70 percent since November, off
the back of aggressive fiscal and monetary policies to revive
the economy, leaving the market susceptible to profit taking.
It fell more than 7 percent on Thursday after Chinese data
raised doubts about the health of the global economy, but it
found support on Friday from investors looking for bargains.
"The fact the market has had such a huge run over a
relatively short period has left it incredibly vulnerable," said
Shane Oliver, strategist at AMP Capital in Sydney.
"It's often the nature in bull markets where you have a
steady upwards trajectory and investors get long in their
positioning." he said. "Then some uncertainty appears and
suddenly they have to close their positions which causes these
MSCI's broadest index of Asia-Pacific shares outside Japan
shed 0.4 percent and reached levels not seen
since April 19, extending Thursday's 2.2 percent fall.
Australian shares underperformed, sliding 1.6 percent.
Having swung from gains of 3.6 percent to losses of 3.5
percent, the Nikkei ended the session 0.9 percent
higher. It was down 3.5 percent for the week and some 8 percent
off a 5-1/2 year peak touched on Thursday before starting to
Still, the Nikkei has rallied off the back of policies
pushed by Prime Minister Shinzo Abe to revive the world's
third-largest economy, which has suffered years of deflation.
James Bullard of the U.S. Federal Reserve said big price
swings in Japan were understable given the pace of the Nikkei's
"I wouldn't be surprised with that kind of action over that
kind of time period that you are going to get some volatility,"
he told CNBC.
Uncertainties surfaced on Thursday after HSBC's preliminary
"flash" survey showed Chinese factory activity declined in May
for the first time in seven months and Federal Reserve Chairman
Ben Bernanke hinted that the U.S. central bank could soon scale
back monthly bond purchases.
Two senior U.S. central bankers have since sought to soothe
market fears, saying the Fed will not hastily withdraw its
policy stimulus and the pace of bond purchases could be adjusted
up or down depending on how the economy fared.
Bank of Japan (BOJ) Governor Haruhiko Kuroda on Friday said
the bank had no specific targets for stock prices and the level
of the yen and will not comment on day-to-day moves.
However, Kuroda said the bank will try to tame volatility in
the bond markets through flexible market operations and enhanced
communication with participants.
Japanese government bonds closed slightly lower on the day
after a volatile session. The benchmark 10-year JGB futures
fell 0.21 points to 142.30 while the 10-year cash bond
yield rose 0.5 basis point to 0.835 percent.
Among the major currencies, the yen rose as the turbulent
Nikkei spooked yen-sellers. That drove the dollar down 0.3
percent to 101.66, while the euro shed 0.4 percent to
The euro was up 0.1 percent against the dollar at $1.2942
Commodity currencies such as the Australian dollar were off
lows, but their outlook remained shaky given worries about
The Australian dollar fell 0.5 percent to $0.9688,
but was off Thursday's trough of $0.9593. Support is seen around
the 2012 nadir of $0.9581, and a break there would take it back
to lows not seen since October 2011.
Commodities were calmer with copper up 0.3 percent at $7,323
a tonne following a 2.3 percent slide, gold was a touch
softer at $1,388 an ounce.
Brent crude was also little changed at $102.35 a
barrel, having plumbed a three-week low of $100.64 in the