Asian stocks fall as the focus moves to the u.s. budget talks

TOKYO (Reuters)-Asian shares ended a winning streak of seven days on Wednesday as investor concern increased about whether u.s. lawmakers the world's largest economy in danger of a recession that were to make headway in their budget discussions by not.

Tuesday the agreement by international lenders to cut Greek debt relief that the country offered a looming bankruptcy, but skepticism about the lack of details about how Athens will run budget reforms to meet the new objectives of the debt is averted capped a rise in European equities and the euro.

U.s. stocks slipped overnight after Senate Majority Leader Harry Reid expressed disappointment about little progress in dealing with an approaching "fiscal cliff" of deep cuts in government spending and large tax hikes at the beginning of next year.

MSCI the broadest index of shares of the Asia-Pacific outside Japan advanced of 0.2 per cent, retreating from Tuesday nearly three weeks highlights.

Australian shares.AXJO decreased 0.4 percent, easing two-week highlights. Government data on Wednesday showed a delay in investment in the resource sector, the main motor of the Australian growth, such as costs rose and commodity prices fall, driven by a drop-off in the Chinese question.

Committed investments in large resources and energy projects still rose to a $ 268.4 billion on 31 October a 260.8 billion dollars in late April, but the rise partly due to higher project costs and a decrease in the number of projects masked said Australia's Bureau of resources and energy economy.

South Korean shares.KS11 opened 0.5 percent lower.

The agreement on Greece is good news that it opens the door for disbursements to prevent a default on upcoming debt payments, but it doesn't relate to financing and medium-term debt sustainability issues, Barclays Capital analysts said in a note.

"The uncertainty brought by this approach allows European assets, including the euro, vulnerable to global growth risks. For that reason, we believe that the European muddle through strengthened the market response to the fiscal cliff discussion in the us. "

The euro fell 0.1 percent to $ 1.2937, slipping from a peak of $ 1.3010 hit on the news from Greece on Tuesday, its highest level since October 31.

Japanese Nikkei stock average.Follow N225 opened of 0.5%, after the conclusion of a seven-month high.

The Nikkei has risen 8.8 percent in the past two weeks since the Government announced a 16 December elections. Japan's largest opposition party expected to win power and investors expect that it will force the Bank of Japan in aggressive easing.

Concerns about the fiscal crisis overshadowed positive us economic data which showed improvement in durable orders, the real estate sector and consumer confidence, that a 4-1/2-year high in November, hit and drove that safe haven US Treasury prices higher while the strengthening of the dollar.

The dollar fell 0.1 percent against the yen at 82.06. U.s. crude oil futures fell by 0.1 per cent at $ 87.09 per barrel. Gold stabilized at $ 1, per ounce on Tuesday after slipping 741.45 for a second session.

(Editing by Michael Perry)

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