GLOBAL MARKETS-Asian shares subdued on dampened U.S. rate cut expectations

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Asia ex-Japan subdued, Australian shares, Nikkei slips
* Strong U.S. payrolls temper Fed rate cut expectations
* Turkish lira near 2-week lows on c.bank independence
worries

By Swati Pandey
SYDNEY, July 8 (Reuters) - Asian shares slipped on Monday as
investors wagered on a less aggressive policy easing in the
United States, while the Turkish lira held near two-week lows
after the country's president dismissed its central bank
governor over the weekend.
Global equities have generally been bolstered by
expectations that central banks will keep interest rates at or
near record lows to boost economic growth.
Those expectations were tempered by a U.S. labour report
that showed nonfarm payrolls jumped 224,000 in June, beating
forecasts for 160,000, in a sign the world's largest economy
still had fire.
Asian shares tracked Wall Street, which fell from record
highs on Friday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS stumbled 0.3%, with South Korea's KOSPI .KS11
off 1% and Australian shares .AXJO down 0.4%.
Japan's Nikkei .N225 faltered 0.6%.
"The June payrolls number threw a spanner in the works for
those participants looking for a 50 basis point cut to the
federal funds rate at the upcoming FOMC meeting," ANZ analysts
wrote to clients in a note.
"This was the strongest non-farm payrolls print since
January this year and suggests the U.S. economy still has firm
footing," they added.
"The figures also suggest that the market's pricing for a
need for 'quick-fire' cuts to policy may need to be reassessed."
In reaction to the data, U.S. Treasuries sold off, sending
yields on two-year notes about 10 basis points higher.
Expectations for a Fed rate cut also narrowed with the
market now pricing a 27 basis points easing this month, from 33
basis points prior to payrolls. 0#FF:
Fed Chairman Jerome Powell is expected to provide further
cues on the near-term outlook for monetary policy this week at
his semi-annual testimony to the U.S. Congress on the economy.
The Fed in its semi-annual report to Congress on Friday
repeated its pledge to "act as appropriate" to sustain economic
growth. AND GEOPOLITICS
In currency markets, action was in the Turkish lira which
weakened to 5.8245 per dollar, the lowest since June 25 after
Turkey's central bank governor Murat Cetinkaya, whose four-year
term was due to run until 2020, was replaced by his deputy Murat
Uysal.
President Tayyip Erdogan sacked Cetinkaya for refusing the
government's repeated demands for rate cuts, raising questions
about central bank independence.
The lira pared some of its losses to last hold near 5.7401.
The dollar index .DXY , which measures the greenback
against a basket of major currencies, eased from a 2-1/2 week
top of 97.443 to last quote at 97.251.
The euro EUR=D3 was flat at $1.1226, not far from a
2-1/2-week low of $1.1205 touched on Friday.
The Australian dollar AUD=D3 , which has been on an uptrend
since June 18, slipped below 70 U.S. cents to last trade at
$0.6974.
Geopolitics may be in focus this week following news on
Sunday that Iran will boost its uranium enrichment, in breach of
a cap set by a landmark 2015 nuclear deal. "So far U.S.-Iran tensions have not had a material impact on
markets, but if tensions escalate it could be a different
story," said National Australia Bank strategist Rodrigo Catril.
The latest news on the China-U.S. trade talks failed to make
an impression on markets.
White House Economic advisor Larry Kudlow confirmed top
representatives from the United States and China will meet in
the coming week to continue trade talks. "Whether the negotiators can find a solution to the
difficult structural issues that remain between the two sides is
another matter, and Kudlow cautioned there was 'no timeline' to
reach an agreement," NAB's Catril said.
In commodity markets, oil prices rose with Brent crude
futures LCOc1 , the international benchmark for oil prices, up
9 cents at $64.32 per barrel while U.S. crude added 8 cents to
$57.59.
Spot gold XAU= fell 0.2% to $1,397.03 an ounce.

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(Editing by Darren Schuettler)