GLOBAL MARKETS-Asia shares subdued by tech retreat, U.S. futures steady

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Early moves marginal with Japan and China on holiday
* NASDAQ futures edge up after selloff in high caps
* Dollar holds gains on risk of higher U.S. rates
* Oil at 7-wk high as more countries open borders to travel

By Wayne Cole
SYDNEY, May 5 (Reuters) - Asian shares were trying to avoid
a fourth straight session of falls on Wednesday as U.S. stock
futures steadied in the wake of a pullback in large-cap tech
darlings.
Holidays in Japan, China and South Korea helped cushion
markets, leaving MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS up 0.1%.
Japan's Nikkei .N225 was shut, but futures recouped early
losses to stand at 28,850 NKc1 compared to the last cash close
of 28,812.
India's Nifty 50 .NSEI started up 0.7% ahead of a speech
by the country's central bank governor, which might include
policy changes to support the pandemic-stricken economy.
Nasdaq futures NQc1 edged up 0.3% after a sharp fall
overnight, while S&P 500 futures ESc1 also added 0.3%.
The Nasdaq had dropped 1.9% on Tuesday as some big tech
names ran into profit-taking, including Microsoft Corp MSFT.O ,
Alphabet Inc GOOGL.O , Apple Inc AAPL.O and Amazon.com Inc
AMZN.O . .N
Stretched valuations were tested when U.S. Treasury
Secretary Janet Yellen said rate hikes may be needed to stop the
economy overheating. She later waked back the comments, but it reminded investors
that rates would have to rise at some point in the future.
"Moderate inflation and a slow moving Fed would continue to
be supportive, but inflation and a reactive Fed may prove to be
a negative for valuations," said Tapas Strickland, a director of
economics at NAB.
"Either way yields and equities are likely to be in a dance
as much better than expected economic data continues to
challenge central banks' rates guidance."
One such challenge looms on Friday when U.S. payrolls data
are forecast to show a hefty rise of 978,000, while some
estimates go as high as 2.1 million.
So far, Federal Reserve Chair Jerome Powell has argued the
labour market is still far short of where it needs to be to
start talking of tapering asset buying.
Minneapolis Fed Bank President Neel Kashkari, a notable
dove, on Tuesday said it may take a few years for the economy to
get back to full employment. The Fed's dogged patience allowed yields on U.S. 10-year
notes US10YT=TWEB to ease back to 1.59%, from last week's top
of 1.69%, though the market has struggled to break below 1.53%.
Just the mention of higher U.S. rates was enough to help the
dollar recoup a little of its recent losses.
The euro dropped back to $1.2020 EUR= and threatened to
breach important chart support in the $1.1995/1.2000 area. A
break would open the way to a retracement target at $1.1923.
The dollar held at 109.27 yen JPY= , having shied away from
resistance at 109.61. Against a basket of currencies, the
dollar eased a touch to 91.180 =USD , but remained some way
above the recent two-month low of 90.422.
The New Zealand dollar blipped higher to $0.7173 NZD=D3
when local jobs data proved stronger than expected. In commodity markets, palladium XPD= soared to a record
high on worries over short supplies of the metal used in
emissions controlling devices in automobiles. GOL/
Gold was left lagging at $1,783 an ounce XAU= .
Oil prices climbed to seven-week peaks as more countries
opened their borders to travellers, improving the demand outlook
for petrol and jet fuel. O/R
Brent LCOc1 added 54 cents to $69.42 a barrel, near its
highest since mid-March, while U.S. crude CLc1 rose 52 cents
to $66.23 per barrel.

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(Editing by Sam Holmes)