By Sam Byford

TOKYO, July 6 (Reuters) - Asian stocks slipped and the dollar stood by a two-decade high on the euro on Wednesday as investors' fears deepened that the continent is leading the world into recession, while oil and European equity futures attempted to steady after a slide.

Brent crude futures bounced 1.4% in morning trade to $104.18 a barrel, nursing its wounds after a 9.5% drop to a 2-1/2 month low on Tuesday with worries that a global growth slowdown is going to sap demand.

MSCI's index of Asia-Pacific stocks outside Japan fell 0.6%. Japan's Nikkei fell 0.88%, on course for its first loss of the week. S&P 500 futures fell 0.2%, though Euro STOXX 50 futures bounced 1.8%.

Hong Kong's Hang Seng index was down 0.42% while Chinese blue chips fell 0.7%, dragged by worries about new COVID-19 cases in Shanghai risking fresh restrictions.

Overnight Europe's STOXX 600 index dropped 2% and the euro plunged more than 1.5% to $1.0236, its lowest since late 2002 as talk of gas rationing spooked traders.

"The drumbeat is getting louder and louder about recession risk," said Jason Teh, chief investment officer at Vertium Asset Management in Sydney.

"Right now defence is the name of the game. It's the best strategy right now, because in a recession a lot of things can fall out of bed."

Uncertainty over Europe's gas supply has set prices rocketing. Benchmark Dutch gas prices have doubled since the middle of June and rose 7% overnight to a four-month high.

Year-ahead baseload power in Germany hit a record high. Investors are nervous about continuity of supply after the Nord Stream pipeline, which carries Russian gas to Germany, shuts for ten days for maintenance from July 11.

In Tokyo, shares of commodities trading firms Mitsui & Co and Mitsubishi Corp dropped more than 5% after former Russian president Dmitry Medvedev threatened oil and gas supply cuts to Japan.

Sterling was also pinned by a two-year low and not helped by the latest political crisis to hit Prime Minister Boris Johnson's government, with the resignation of his finance and health secretaries questioning his longevity as leader.

After touching $1.1899 overnight the currency steadied at $1.1964 in Asia.

A change in leader, or speculation about it, could lend support but it is weighed heavily by an economic outlook that a new leader is unlikely to shift.

"The UK is in danger of being the slowest-growing major advanced economy next year, with the highest inflation rate and the biggest current account deficit," said Societe Generale strategist Kit Juckes. "That's quite a collection, and it represents a clear threat to the pound."