(Corrects to show the New Zealand dollar fell not rose in 1st and 9th graf)
* Euro dips but fall seen limited
* Gold hits another record, ETF holdings rise
By Saikat Chatterjee
HONG KONG, April 18 (Reuters) - Shares in Asia's developed markets edged up as investors bet that China's latest round of policy tightening would not derail hopes of a sustained economic recovery, while the high-yielding Kiwi dollar fell nearly a percent after inflation data.
China raised banks' reserve requirements for the fourth time this year on Sunday. The move was not a surprise as market players had predicted more tightening after last week's
data showed an acceleration in inflation. [ID:nL3E7FH05Y].
But the policy action may temper heavy buying in Asian equities which received a boost from a strong Wall Street close, riding on the back of encouraging U.S. data.
Japan's Nikkei opened slightly up and Australia's benchmark index was also up 0.1 percent. MSCI's index of Asia Pacific shares outside Japan was flat, weighed down by a decline in South Korean stocks .
"The market will probably open carefully today as it's near a record high, and positive momentum currently is a bit weak with China's policy moves," said Kim Soo-young, a market analyst at KB Investment & Securities.
In currency markets, the euro dipped as traders grew sceptical of a quick solution to the euro zone's festering debt crisis after Finnish voters handed the anti-euro True Finns party a crucial role in parliament and possibly into government. [ID:nLDE73G02L]
But the common currency is expected to be supported by prospects of another interest rate hike after last week's quarter point increase, as data showed euro zone inflation climbed higher than expected in March. [ID:nLDE73E12U]
In contrast, the Fed is expected to continue with its ultra easy policy stance, encouraging investors to search for high-yielding currencies elswhere.
The New Zealand dollar fell nearly 1 percent after inflation came in below market expectations, leaving the central bank room to keep interest rates at a record low. It hit a three-year high of $0.8000 late last week. [ID:nL3E7FI02L]
In commodities, gold rose to yet another record high, building on four consecutive weeks of gains, powered by rising inflation pressures and a weakening dollar. Holdings in the SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose too. [ID:nL3E7FI013]
U.S. crude futures
Notwithstanding the commodities rally, U.S. Treasury yields declined as recent data showed underlying U.S. inflation pressures remained subdued. Ten-year yields edged a basis point lower to 3.40 percent after falling 9 basis points on Friday.
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http://blogs.reuters.com/hedgehub (Additional reporting by Jungyoun Park in SEOUL and Ian Chua in SYDNEY; Editing by Alex Richardson)