RPT-GLOBAL MARKETS-Asia stocks cut gains, US dlr slips on Iran

* Stocks up but report of Iran missile test jars investors

* All eyes on company earnings as forecasts downgraded

* Crude climbs $1 to $137 on geopolitical tension (Repeats to additional subscribers with no change to text) (Adds European outlook, updates prices)

By Kevin Plumberg

HONG KONG, July 9 (Reuters) - The U.S. dollar fell and Asian stocks surrendered some gains on Wednesday, after a report that Iran tested a missile that could reach Israel, raising concerns this week's $9 dip in oil prices is only fleeting.

Crude crept up to session highs above $137 a barrel CLc1 and the Swiss franc and yen, currencies that serve as safe havens in times of market volatility, strengthened after state media reported Iran fired a Shahab 3 missile capable of hitting targets 2,000 km (1,250 miles) away. [ID:nL09142855]

European stocks are expected to open broadly 1 percent higher, according to financial bookmakers, riding a rebound in global equity markets which hit fresh lows on Tuesday.

"The dollar had been strong and oil prices had been falling, but the missile firing will rekindle inflationary concerns," said Fumiyuki Nakanishi, group manager of the investment information department at SMBC Friend Securities in Tokyo.

Japan's Nikkei share average .N225 clung to gains of 0.15 percent, rebounding from a three-month low the previous session.