By Wayne ColeSYDNEY (Reuters) - Asia shares were subdued on Tuesday while the dollar relapsed as investors raced to book profits on its post-payroll gains despite all the talk of a U.S. rate rise as early as September.Japan's Nikkei eased 0.7 percent and Australian stocks were barely changed. MSCI's broadest index of Asia-Pacific shares outside Japan was a fraction firmer having touched a 10-week low on Monday.There was much attention on China where stocks had risen more than 2 percent on Monday to a new seven-year high on speculation MSCI might decide to add Chinese shares to its global index.An announcement is due later Tuesday on whether MSCI will include China 'A' shares in its Emerging Markets Index, a decision the index publisher says could draw up to $400 billion to China stocks over time.China will also release figures on consumer and producer prices which are expected to show muted inflationary pressures.On Wall Street, the Dow ended Monday down 0.46 percent, while the S&P 500 lost 0.65 percent and the Nasdaq 0.92 percent.Apple weighed most on the Nasdaq Composite and the S&P 500. It was down 0.66 percent after the iPhone maker unveiled a new music service.There was the usual caution over Greece where interminable debt talks showed no sign of ending soon.The Greek government did say it was ready to negotiate a settlement acceptable to both sides by the end of this month, just three days after Prime Minister Alexis Tsipras told his parliament the latest proposal from the EU and IMF was "absurd".Yet there was no new proposal from Athens that its creditors could agree to, an EU official said. There was better news from Germany where industrial output beat expectations and helped ease fears of deflation.Yields on German 10-year paper climbed to 0.89 percent, while those on 10-year Treasuries dipped to 2.39 percent. As a result the premium offered by U.S. debt narrowed to around 150 basis points, having been as wide as 190 back in March.The dollar also took a hit from reports President Barack Obama had called the high currency a problem in talks at the G7, though the White House later denied he had ever said it.Federal Reserve and other officials have expressed concerns about dollar strength's impact on growth and exports.Early Tuesday, the euro was holding at $1.1280 having recovered all of Friday's drop to $1.1048. The dollar dipped just a little on the yen to 124.59 , to remain within striking distance of the recent 13-year high of 125.86.The dollar index stood at 95.259 having shed 1.1 percent on Monday.In commodity markets, oil steadied after being hit by a slump in Chinese demand and worries that OPEC's decision to pump crude without restraint could prolong the current supply glut.U.S. crude futures bounced 21 cents to $58.35 a barrel, while Brent added 15 cents to $62.85.Gold was tracking sideways at $1,173 an ounce.(Editing by Shri Navaratnam)Join the conversation about this story »
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