By Scott Murdoch

SYDNEY, Feb 7 (Reuters) -Asian share markets stabilised somewhat on Tuesday after steep losses in the past 24 hours, while the U.S dollar remained elevated as investors considered the prospects interest rates would remain higher for longer in many developed economies.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS bounced slightly 0.4%, after U.S. stocks ended the previous session with mild losses. The index is up 0.8% so far this month.

Australia's S&P/ASX200 .AXJO was up 0.13% and Japan's Nikkei stock index .N225 rose 0.26%.

Hong Kong's Hang Seng Index .HSI opened up 0.68% and China's bluechip CSI300 Index .CSI300 was 0.3% higher in early trade.

The Reserve Bank of Australia (RBA) is expected to extend its monetary tightening campaign when it meets later in the day.

The central bank is likely to lift the official cash rate by another 25 basis points to 3.35%, according to economists polled by Reuters. The decision will be announced at 0330 GMT.

"Sentiment in markets is dominated by central banks and the repricing of rates yet again," Kerry Craig, JPMorgan Asset Management's global market strategist, told Reuters.

"Equities have had a strong run since the start of the year so seeing an air pocket emerge now is no major surprise.

"It's a quiet week for economic data globally and when that is the case uncertainty over interest rates is the dominant theme among investors."

In the Asian trading session, the yield on benchmark 10-year Treasury notes US10YT=RR hit 3.6268% compared with its U.S. close of 3.632% on Monday.

The two-year yield US2YT=RR, which rises with traders' expectations of higher Fed fund rates, touched 4.4368% compared with a U.S. close of 4.456%.

The repricing of higher rates began after strong U.S jobs growth in January, with employment rising 517,000, more than double economists expectations. The unemployment rate hit 3.4%, the lowest in more than 53 years.

Investors will be closely watching a speech by Federal Reserve Chairman Jerome Powell at the Economic Club of Washington later on Tuesday.

Overnight on Wall Street, the Dow Jones Industrial Average .DJI fell 0.1%, the S&P 500 .SPX lost 0.61% and the Nasdaq Composite .IXIC dropped 1%.

"The market has repriced to expect that the Fed Funds rate will peak just above 5% and it now only anticipates very limited rate cuts, just one of 25 basis points by the end of this year," ANZ economists wrote.

"It's very clear that sentiment is fragile and data dependent, and this new defensive posture may have further to run near term as risk positions are scaled back."

The dollar eased 0.04% against the yen to 132.6 JPY=, after touching a three-week high of 132.9 during the U.S trading session.

The European single currency EUR= was up 0.1% on the day at $1.0736, having lost 1.16% in a month.

The dollar index =USD, which tracks the greenback against a basket of major trading partner currencies, was down marginally at 103.47 from its U.S. trading levels. However, it remains well above its recent low of 101.55 on Feb 3.

U.S. crude CLc1 ticked up 0.9% to $74.78 a barrel. Brent crude LCOc1 rose to $81.69 per barrel.

Gold was slightly higher. Spot gold XAU= was traded at $1871.65 per ounce. GOL/

Editing by Shri Navaratnam

To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets For the state of play of Asian stock markets please click on: 0#.INDEXA