* Nikkei loses 0.3 pct, MSCI Asia-Pacific index up 0.1 pct
* Asia sags after S&P 500 pulls back from record highs
* Dollar index hovers near 4-month high
* Crude on defensive; profit taking takes nickel off peak
* Spreadbetters forecast mixed open for European stocks
By Shinichi Saoshiro
TOKYO, July 20 (Reuters) - Profit taking weighed on Asian stocks on Wednesday after a record run on Wall Street showed signs of petering out, while the dollar hovered near a four-month high against a basket of currencies following upbeat U.S. data.
Investors' risk appetite, which has recovered rapidly from the Brexit shock late in June, received a sobering reminder after the International Monetary Fund cut its global growth forecasts for the next two years on Tuesday, citing uncertainty over Britain's looming exit from the European Union.
Spreadbetters also saw a subdued start for European stocks, forecasting a slightly higher open for Britain's FTSE, a marginally lower start for Germany's DAX and France's CAC to open flat.
MSCI's broadest index of Asia-Pacific shares outside Japan edged up 0.2 percent, having reached its highest in almost nine months last week.
Shares rose in Hong Kong, Australia, India and much of Southeast Asia, but retreated in South Korea and China.
Japan's Nikkei fell 0.3 percent, on track for its first decline in seven days.
"Although the market is taking a break from a long rally amid a lack of fresh catalysts to buy, investors may chase the market higher depending on central bank events next week," said Takuya Takahashi, a strategist at Daiwa Securities in Tokyo.
The S&P 500 pulled back from record highs on Tuesday, while the Dow edged up for an eighth straight day of gains, as investors pondered mixed earnings reports and a gloomier global outlook.
The dollar index stood at 97.054, after touching a four-month peak of 97.158. Tuesday's stronger-than-expected June U.S. housing starts data has given the dollar a lift.
"The U.S. dollar is proving to be a big winner in a period when central banks around the world are talking about easing," wrote Kathy Lien, managing director of FX strategy for BK Asset Management.
"That leaves the Federal Reserve and the Bank of Canada as the lone soldiers standing ground on steady policy. We haven't seen significant strength in the Canadian dollar, partly because oil prices have been falling but the U.S. dollar is seeing nice momentum."
The dollar traded at 106.055 yen after touching a one-month high of 106.53 overnight. Expectations that the Bank of Japan would ease monetary policy later this month have weighed on the yen.