* MSCI Asia-Pacific index hits 2-month low

* Markets continue digesting possibility of earlier U.S. rate hike

* Batch of soft China data nudges Aussie to 6-year trough

* Spreadbetters see European shares opening moderately higher

By Shinichi Saoshiro

TOKYO, March 11 (Reuters) - Asian stocks skidded to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier U.S. interest rate hike, a prospect that sent the dollar to a 12-year high against the euro.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent after touching its lowest since January. Australian shares lost 0.5 percent and Malaysian and Indonesian stocks also declined.

Riskier assets both in the United States and elsewhere have come under pressure after Friday's robust U.S. employment data increased expectations that the Federal Reserve could raise rates as soon as June - a prospect that appeared relatively more remote a few weeks prior.

The possibility of higher U.S. yields siphoning away funds from riskier assets drove the S&P 500, at a record high two weeks ago, to its worst decline in two months overnight while emerging market stocks fell to their lowest since early January.

Mexico's peso weakened to a record low and its Malaysian, South Korean, Brazilian and South African counterparts have also suffered heavy hits.

Renewed concern about Greece's debt talks with euro zone partners and deflationary pressures in China have also weighed on emerging markets in general.

Data on Wednesday reinforced the notion of slowing Chinese growth, with industrial output, retail sales and investment figures proving a shade weaker than expected.

Japan's Nikkei bucked the trend and rose 0.5 percent as better-than-expected machinery orders helped offset Wall Street losses.

But the deepening decline in the yen, usually a positive factor for Japanese stocks as it buoys exporters, had some worrying about other consequences like the burden placed on importers.

"The market started to worry about side effects from a further slide in the yen," said Hiroichi Nishi, general manager at SMBC Nikko Securities in Tokyo, adding that there are also concerns that a stronger dollar hurts U.S. multinational companies' earnings.

Spreadbetters forecast Britain's FTSE, Germany's DAX and France's CAC to open moderately higher, rebounding from the previous day's slide.

In currencies, the euro fetched $1.0689 after touching a 12-year trough of $1.0665. Downward pressure on the common currency increased after the European Central Bank kicked of its quantitative easing programme and began its bond-buying on Monday.