* Asian shares rebound after big losses but gains cut after soft China data
* Concerns over Ukraine, China slowdown and copper rout sap risk appetite
* Gold hits 6-month high; euro, Swiss franc 2 1/2-year high vs dollar
* European shares likely to rise, DAX seen up 0.5 pct
By Hideyuki Sano
TOKYO, March 13 (Reuters) - Asian shares cautiously rebounded from two-week lows on Thursday but gains were pared after disappointing retail sales and factory output data underscored investors' concerns over slowdown in China.
A standoff in Ukraine and a massive fall in copper prices in recent weeks also spooked investors, although a flat close on Wall Street and some positive data in Australia and Japan helped to cushion the blow.
European shares are expected to recoup some of their heavy losses on Wednesday, with Germany's DAX seen as rising as much as 0.5 percent and France's CAC 0.4 percent.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5 percent, recouping a half of its losses the previous day, with Australian shares gaining on strong local employment data.
But soft Chinese data dented many markets, with Japan's Nikkei slipping 0.1 percent, erasing gains made after Japanese machinery orders beat expectations. South Korean shares (.KS11 )also erased most of its gains to end up 0.1 percent.
"What we're seeing today is a reaction to yesterday's sharp decline based on price (valuation) merits," said Hana Daetoo analyst Chang Hee-jong.
"But concerns about China remain the biggest issue for the market, and this will continue to affect markets throughout the first half of this year."
China's Jan-Feb industrial output growth came in below forecasts for the combined January/February period, with retail sales also weaker than expected, stoking worries growth could fall as Beijing pushes for economic reforms.
"Jan-Feb figures were disappointing, implying weaker growth momentum in China's economy. Probably a storm is coming," said Gao Yuan, analyst at Haitong Securities in Shanghai.
A major victim of concerns over China, copper dropped 0.4 percent to $6,508 a tonne, a day after it hit a four-year low at $6376.25 hit on Wednesday.
After a drop of around 7 percent so far this month, investors are worried about a possible unravelling of Chinese loan deals using copper as collateral, which could cause some investors more pains.
On Wall Street, the S&P 500 reversed early losses and ended nearly flat, outperforming many others thanks in part to a string of positive data on the U.S. economy.
EURO AT 2 1/2 YEAR HIGH
The diplomatic stalemate between Russia and the West over Ukraine has also led investors to buy traditional safe haven assets as the European Union agreed on a framework on Wednesday for its first sanctions on Russia since the Cold War.