SINGAPORE, March 14 (Reuters) - Asian shares held near

seven-month highs on Thursday though traded mostly sideways as

investors awaited fresh catalysts that would provide further

clarity on the global interest rate easing cycle.

Japan's Nikkei was headed for a fourth successive

day of loss - its longest losing streak in about five months -

as a potential policy pivot from the Bank of Japan (BOJ) at its

meeting next week draws near.

MSCI's broadest index of Asia-Pacific shares outside Japan

was last little changed and strayed not too far

from a seven-month peak hit in the previous session, as traders

shrugged off higher-than-expected U.S. inflation rate data.

Attention now turns to producer price data in the world's

largest economy due later on Thursday, which feeds into the core

personal consumption expenditures (PCE) price index.

The core PCE index is the U.S. Federal Reserve's preferred

measure of inflation.

Retail sales figures for February are also due later in the

day and comes ahead of the Fed's policy meeting next week, where

focus will be on clues as to how soon policymakers could

commence their rate-easing cycle.

"Since the FOMC (Federal Open Market Committee) last met,

the U.S. inflation data have come in a bit stronger than

expected, while the labour market generally has remained

resilient," said economists at Wells Fargo in a client note.

"With payroll growth still solid and inflation proving to be

a bit stickier recently, we suspect the FOMC will still be

seeking greater confidence at the end of its meeting next week

that inflation is headed back to 2% on a durable basis."

Still, the run of better-than-expected U.S. economic data

has done little to alter the trajectory of the dollar,

which was broadly weaker on the day as traders remained focused

on the prospect of lower U.S. rates by the end of the year.

The euro hovered near its recent two-month high

and last bought $1.0949, while the Australian and New

Zealand dollars rose 0.12% and 0.26% respectively,

buoyed by gains in commodity prices.

In China, the blue-chip CSI300 Index rose 0.46%,

while the Shanghai Composite Index edged 0.25% higher,

both reversing some of the loss of the previous session and

shrugging off news that a Washington-based global trade

association representing biotechnology companies is taking steps

to "separate" from Chinese member Wuxi AppTec.

Hong Kong's Hang Seng Index fell 0.1%, dragged by

technology stocks which slid 0.9%.

Country Garden Holdings ( CTRYF ) was last up 1.7%, after

tumbling nearly 5% in the previous session after the Chinese

developer said funds for a 96 million yuan ($13.35 million)

coupon payment due Tuesday were not fully in place.

RIPE FOR CHANGE

In Japan, swirling speculation that the BOJ could end

negative interest rates as soon as next week kept the yen and

domestic yields supported.

The currency rose marginally to 147.71 per U.S.

dollar on Thursday while the 10-year Japanese government bond

(JGB) yield was up 2.5 basis points at 0.78%.

The Nikkei was meanwhile kept under pressure and

eased 0.2%.

Investors have been increasingly pricing in the chance of a

March policy shift, particularly after news of bumper pay rises

from some of Japan's biggest names at this year's annual wage

negotiations.

A preliminary survey on big firms' wage talks is due on

Friday. BOJ policymakers have said the talks are key to

determining the timing of the central bank's stimulus exit.

"I think an earlier decision to scrap NIRP (negative

interest rate policy) in March will suggest that the BOJ's

confidence in achieving its 2% inflation target is much

stronger, so I think that could have some impact on market

expectations for the pace of rate hikes beyond the first

decision to scrap NIRP," said Yujiro Goto, head of FX strategy

for Japan at Nomura.

"I think it's more important if the rate hike expectations

into next year increase or not, after the decision to scrap

NIRP. That's (potentially) more important on financial markets.

A timing for a second rate hike could be more important for the

JGB and yen market."

In commodities, Brent rose eight cents to $84.11 a

barrel, while U.S. crude gained seven cents to $79.79 per

barrel.

Spot gold was little changed at $2,174.69 an ounce.

($1 = 7.1915 Chinese yuan renminbi)