* Financial shares lead Europe lower after fall in Asia
* Wall Street signalled to open lower
* Dollar dips vs yen, euro down on inflation undershoot
* German inflation hits 3 1/2-year high but misses forcast
* Graphic: World FX rates in 2017 http://tmsnrt.rs/2egbfVh
By Nigel Stephenson
LONDON, Jan 30 (Reuters) - Shares fell in Europe and Asia on Monday and the dollar dipped against the safe-haven yen after immigration curbs introduced by Donald Trump added an extra layer of uncertainty to the economic impact of the new U.S. president's policies.
Wall Street appeared headed for a weaker opening, with e-mini futures contracts on the S&P 500 down 0.3 percent.
The euro fell to an 11-day low against the dollar and German government bond yields pared gains after German inflation in January came in slightly below forecast, easing pressure on the European Central Bank to unwind its stimulus programme.
Trump suspended travel to the United States from Syria, Iraq, Iran and four other countries on national security grounds. The executive order, signed on Friday, triggered huge protests in U.S. cities and raised concern among some in markets over the potential impact of other policy moves.
"Concerns on protectionism appear to be rising after President Trump's executive order to restrict immigration," said Adam Cole, head of G10 foreign exchange strategy with RBC in London.
The pan-European STOXX 600 index dropped 0.6 percent, led by a 2 percent fall in euro zone banks and drops in commodity related stocks.
UniCredit shares fell nearly 6 percent after the Italian bank said its end-2016 capital ratios would not meet European Central bank requirements as it prepares to launch a 13 billion euro ($13.9 billion) rights issue.
Trade in Asian shares was thinned by the Lunar New Year. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.5 percent.
Australian shares fell 0.9 percent. Japan's Nikkei fell 0.5 percent as the strong yen weighed on exporters.
"Trump always stated these were policies he would implement," said James Woods, global investment analyst at Rivkin Securities in Sydney. "This renews concerns about a trade war with China that would significantly affect both the Asian and the global economy."
The dollar rose 0.5 percent to a 10-day against a basket of currencies, reversing earlier falls.
The euro fell 0.6 percent to $1.0633 and sterling dropped 0.4 percent to $1.25, although the yen was up 0.3 percent at 114.70 per dollar.
In debt markets, German 10-year yields dipped 0.3 basis points to 0.46 percent after inflation hit a 3 1/2-year high but, at 1.9 percent on the year, slightly undershot forecasts.