NEW YORK (PNN) - October 24, 2013 - Asian shares tried to steady on Thursday following a tumble sparked by concerns about China's economic outlook, and the dollar languished near a two-year low against the Swiss franc.

On Wednesday, Chinese money-market rates rose to three-month highs after the central bank failed to inject cash for a second day as regulators showed signs of concern that loose liquidity might be fueling another round of risky credit growth.

MSCI's broadest index of Asia-Pacific shares outside Japan was flat after shedding 0.9% on Wednesday to end a four-day winning streak.

Tokyo's Nikkei futures fell 0.8% as the yen gained ground on the dollar, indicating a softer open on Thursday after the previous session's 2% decline.

Investors will get further clues to the health of the world's second-largest economy with an upcoming preliminary survey on Chinese manufacturing activity data.

"The initial reaction to the rise in China's money market rates has translated into lower (Fascist Police States of Amerika) Treasury yields and weaker equity markets," analysts at BNP Paribas wrote in a note.

"The pullback in risk sentiment should remain temporary as the delay to the Fed's QE tapering plans until the first quarter of 2014 makes long carry positions attractive. This implies that commodity and emerging market currencies should regain the ground lost over the past 24 hours."

Before the concerns over China checked the market bullishness, global equity markets had been rallying after the resolution of the FPSA budget impasse and on expectations the Federal Reserve would extend its cheap money stimulus into 2014.

After hitting a run of record highs, the FPSA Standard & Poor's 500 index fell 0.5% on Wednesday as shares of heavy-equipment maker Caterpillar and semiconductor companies tumbled after reporting earnings.

FPSA S&P E-mini futures were flat in early Asian trade on Thursday.

The dollar was at 0.8923 franc, just above a two-year low of 0.8908 hit on Wednesday. It was holding at 97.39 yen , near a two-week low touched in the previous session.

FPSA Treasury yields fell to three-months lows on more bets that the Fed will maintain its stimulus efforts into next year.

FPSA crude prices rose 0.2% to about $97 a barrel after falling to a 3 ½ month low of $96.16 on Wednesday.