(Corrects headline and lead to show Japanese stocks recovered)
* Asia share index slips after touching highest since Aug 2015
* Nikkei recovers after earlier declines on ETF purchase prospect
* Yen rises as scope of BOJ stimulus disappoints
* Europe set to open flat to higher
* Oil prices hit 3-month lows, WTI down 20 pct from 2016 peak
By Nichola Saminather and Hideyuki Sano
SINGAPORE/TOKYO, July 29 (Reuters) - Asian shares slipped after touching a near one-year peak on Friday and the yen strengthened as the Bank of Japan's fresh stimulus measures disappointed markets, although Japanese stocks recovered on higher purchases of exchange-traded funds.
European markets are set to be positive, with futures pointing to a flat start for Britain's FTSE 100, and higher opens for Germany's DAX and France's CAC 40 .
The BOJ doubled purchases of ETFs, but maintained its base money target at 80 trillion yen ($775 billion) and the pace of purchases of other assets, including Japanese government bonds.
The central bank also held at 0.1 percent the interest it charges to a portion of excess reserves financial institutions leave with the central bank, while saying it would thoroughly assess the effects of negative interest rates and its asset buying program.
"The fact that the Bank of Japan eased policy is acknowledged, but it was just ETF buying, and the overall impression was that it was not enough and investors were disappointed," Takuya Takahashi, a strategist at Daiwa Securities, said.
"ETF buying has a direct positive impact on the stock market but its decision to hold off bond buying hit the dollar-yen."
Japan's Nikkei, which swung between gains and losses after the announcement, recovered to trade up 0.6 percent.
The index, which touched a seven-week high last week, was on track for a 0.4 percent weekly drop, but a gain for July of 6.4 percent.
The dollar weakened 1.5 percent to 103.67 yen, its biggest one-day decline since June 24, after the UK's decision to leave the European Union.
Before the BOJ's decision, many investors warned of a big chance of disappointment because markets have long expected more stimulus, making it difficult for BOJ Governor Haruhiko Kuroda to spring a surprise.
MSCI's broadest index of Asia-Pacific shares outside Japan pulled back 0.4 percent after hitting the highest level since Aug. 11, leaving it on track for gains of 0.9 percent for the week, and 5.4 percent for the month.
Wall Street shares remained near all-time highs, with tech heavyweights Alphabet and Amazon rising after the bell as their earnings beat expectations .