* Yen rises to fresh 18-month high against dollar

* Australian shares slip after lacklustre China survey

* Crude oil futures give back some gains after winning week

By Lisa Twaronite

TOKYO, May 2 (Reuters) - Asian shares fell on Monday, led by a plunge in Japan's Nikkei after the dollar notched a fresh 18-month low against the yen.

Financial spreadbetters predicted Germany's DAX would open 0.06 percent higher, and France's CAC 40 was expected to open flat. UK markets are closed for a public holiday.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.4 percent, after Wall Street marked losses following a spate of disappointing earnings.

Adding to the subdued sentiment, a survey released on Sunday showed that activity in China's manufacturing sector expanded for the second month in a row in April but only marginally, raising doubts about the sustainability of a recent pick-up in the economy.

Australian shares fell 0.3 percent after disappointing results from Westpac Banking Corp.

Australia's central bank board will meet for a policy review on Tuesday and is widely expected to keep its cash rate at a record low of 2.0 percent, though some economists expect a cut.

Markets in Hong Kong, China, Taiwan, Singapore and Malaysia were closed on Monday.

Japan's Nikkei stock index ended down 3.1 percent, as investors reacted to the yen's recent galloping gains.

"We've started the week with a precipitous drop in Japanese equity as the market responds to the strength of the yen," said Martin King, co-managing director at Tyton Capital Advisors.

Thin liquidity also amplified moves, as Japan was in the middle of its Golden Week series of holidays. Markets were closed on Friday, and will be closed on Tuesday, Wednesday and Thursday this week.

The dollar was slightly higher against the yen at 106.51 after earlier dropping as low as 106.14, its deepest trough since October 2014. It logged its worst week against the yen since the 2008 financial crisis after the Bank of Japan decided not to muster fresh stimulus measures at its policy meeting last Thursday.

The euro edged up slightly to $1.1465, after nudging to a 6 1/2-month high of $1.14815, while the dollar index, which tracks the greenback against a basket of six rival currencies, was 0.1 percent lower at 92.988.

"The start of the new month does not mean a new trend. The technical tone of the dollar is weak," Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York, said in a note to clients.

"The Federal Reserve acknowledges the continued improvement in the labour market. The problem is that it has not translated to stronger consumption, and business investment remains soft," Chandler said. "Fed officials need more confidence that the six-month economic soft patch has ended."