GLOBAL MARKETS-Shares fall as deepening Greek turmoil weighs
TOKYO, May 14 (Reuters) - Asian shares fell on Monday after weekend talks to form a new Greek government failed and China's latest move to loosen monetary policy highlighted concerns its economy is faltering, prompting investors to further trim their exposure to risk.
MSCI's broadest index of Asia-Pacific shares outside Japan fell as much as 0.6 percent to its lowest in nearly four months, after shedding more than 1 percent on Friday for its biggest weekly loss since late November.
Japan's Nikkei share average gave up early gains to stand nearly flat at midday.
Data on Friday from the Commodity Futures Trading Commission showed hedge funds and other money managers slashed their long positions on commodities by 20 percent, or nearly $18 billion, as prices fell to four-month lows last week, with oil accounting for the bulk of the drop.
"It's risk-off everywhere you look," said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.
The materials sector was the biggest decliner in MSCI's pan-Asian stock index, falling 0.8 percent.
U.S. crude prices slipped 0.7 percent to $95.42, weighed down by China's slowing economy, which clouded the demand outlook, and Saudi Arabia's call for higher oil stock levels. Brent crude eased 0.3 percent to $111.93 a barrel.
The euro fell to its lowest in nearly four months at $1.2878 and the Australian dollar fell below parity to a five-month low, dropping as far as $0.9996.
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