Asia stocks snap six-day winning streak

By Eric Burroughs

HONG KONG (Reuters) - Asian stocks dipped on Monday to snap a six-day winning streak, with investors caught between aggressive steps by central bank to alleviate the sharp global downturn and increasingly grim economic data.

Higher-yielding currencies such as the Australian dollar fell ahead of rate cuts expected this week, while oil prices shed more than a $1 after cartel OPEC delayed a third supply cut to later in the month.

Major central banks from Australia to Europe are seen slashing interest rates deeper this week in a string of policy meetings, marking the latest chapter in official efforts to limit the economic fallout from the 15-month credit crisis.

European shares were seen mixed at the start, with financial bookmakers calling for a more than 1 percent rise in the FTSE 100 .FTSE but a drop in Germany's DAX .GDAXI.

Stocks around the world recovered last week after the U.S. government rescued banking giant Citigroup (C.N), the Federal Reserve said it would buy up to $800 billion (521 billion pound) debt to help households access credit and China slashed rates.

Portfolio managers are grappling with whether the sell-off across equity markets has adequately anticipated the drop in corporate profits from the sharp economic downturn, or whether a further slide is in the offing.

"The market is still tentative because of potential profit downgrades and bad economic news will probably outweigh for a while," said Hans Kunnen, head of investment market research at Colonial First State Investments in Sydney.

The MSCI index of Asia-Pacific stocks outside Japan inched down 0.3 percent but is up 18 percent from a five-year low hit last month. For the year, the index has plunged 57 percent.