By Hideyuki Sano and Shinichi Saoshiro

TOKYO -- Asian shares slipped to one-month lows on Tuesday as the spectre of higher borrowing costs in the United States and slower global economic growth prompted investors to trim their exposure to riskier assets.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1 percent. Shanghai stocks lost 0.6 percent and South Korea's Kospi dropped 1.1 percent.

Japan's Nikkei .N225 fell 0.6 percent from a 2 1/2-month high hit on Monday.

"After share prices have recovered quite a lot (last month), their rally is coming to a halt for now as markets are trying to price in a Fed rate hike in December," said Takeru Ogihara, chief strategist at Mizuho Trust Securities in Tokyo.

Data on Tuesday showed China's consumer inflation moderated more than expected in October, flagging persistent deflationary pressure in the world's second-largest economy.

The numbers followed disappointing Chinese trade figures over the weekend highlighting soft patches in the global economy.

The OECD said in a report on Monday that global trade flows have fallen dangerously close to levels usually associated with a global recession, although steps taken by China and others should ensure a pick-up in 2016.

On the other hand, surprisingly strong U.S. jobs data released on Friday has dramatically changed investors' perception on the Federal Reserve's monetary policy track, with money market futures pricing in more than a 70 percent chance of a rate hike next month.

The 10-year U.S. bond yield touched a 3-1/2-month high of 2.377 percent on Monday and last stood at 2.336 percent.

The two-year Treasuries yield hit 5-1/2-year high of 0.958 percent on Friday and was last at 0.870 percent.

Investors, worried that rising borrowing costs could crimp profit margins of many businesses, took profits from recent gains in global equities.

On Wall Street, the S&P 500 index suffered its worst loss in six weeks on Monday, falling 1.0 percent.

On the other hand, higher U.S. interest rates make parking funds in the dollar more attractive than at present, especially as some of the dollar's major rivals like the euro have negative interest rates.

A consensus is forming at the European Central Bank to take the interest rate it charges banks to park money deeper into negative territory in December, four governing council members told Reuters.

Such a divergent policy outlook helped to cap the euro and lift the dollar, although the U.S. unit slipped a tad on Monday on profit-taking after sharp gains on Friday.

The dollar's index fell to 98.997 from Friday's seven-month high of 99.345.

Against the yen, the dollar eased to 123.15 yen from a 2 1/2-month high of 123.60 set on Monday.

The euro ticked up to $1.0755 from Friday's 6-1/2-month low of $1.07045.

Still, the euro remains vulnerable as Portuguese government bond yields hit a four-month high and shares fell after leftist parties reached agreement on forming an alternative government to try to oust the centre-right.

Elsewhere a firmer dollar put pressure on precious metals.

Gold stood at $1,092.60 per ounce, near its three-month low of $1,085.50 while silver dropped to one-month low of $14.48 per ounce on Monday.

Copper fell to a six-week low of $4,940 per tonne, hit also by concerns about demand from China.

Crude losses for a fourth straight day on Monday on fresh builds at the delivery point for U.S. crude futures.

Brent crude last traded at $47.32 a barrel, having slipped more than 7 percent from last week's high.

(Editing by Shri Navaratnam)