The euro inched up from a 10-month low on Friday and Treasury yields slipped after euro zone leaders and the IMF agreed to provide a joint financial safety net for debt-laden Greece.

But the Greece plan did not extinguish fears about other fiscally vulnerable economies in Europe such as Portugal and Spain, and most Asian stock markets fell across the board.

The euro initially weakened on news of the deal as investors took the view that IMF involvement suggested the 16-country euro zone was unable to handle its problems by itself.

Basically, it seems the problem will be settled without much turmoil, so things should calm. The only concern is if more problems arise with Portugal and Spain, which is possible, said Kenichi Hirano, operating officer at Tachibana Securities in Tokyo.

Adding to worries about government bonds, investor demand at auctions of U.S. Treasuries waned for the third day in a row.

* The euro was up 0.3 percent to $1.3315 after plumbing a low just below $1.3280, but was flat against the yen and sterling. The dollar index <.DXY> against major currencies slipped 0.3 percent in line with the euro's gains.

* The MSCI index of Asia Pacific ex-Japan stocks <.MIAPJ0000PUS> slipped 0.5 percent, with the materials sector leading the way lower. The index is down 0.2 percent so far this year.

* Japan's Nikkei share average <.N225> bucked the trend, rising to a two-month high, helped by buying of large exporters and technology stocks. The index continued to outperform the rest of Asia, up 3.8 percent year-to-date.

* U.S. stock futures were down 0.2 percent, after the S&P 500 overnight <.SPX> briefly hit an 18-month high in the cash market and then slashed gains on concerns higher bond yields would pull money away from the equity market. Key Wall Street indexes finished little changed. <.N>

* The benchmark yield on the 10-year U.S. Treasury note was down 2 basis points from late Thursday in New York, to 3.86 percent. A series of poor U.S. debt auctions this week has pushed up the yield 17 basis points.

* The overnight weakness in Treasuries had a knock-on effect on Japanese government bonds. The 10-year JGB yield rose to a four-month high of 1.385 percent.

* U.S. crude futures were largely unchanged at $80.58 a barrel, with bulls hoping the U.S. dollar will keep correcting lower.

(Additional reporting by Elaine Lies in TOKYO; Editing by Kim Coghill)