GLOBAL MARKETS-Asian shares rise, euro at 4-month peak on EU talks progress

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Asian shares rise in cautious trade, China leads
* Concerns over growing coronavirus cases globally
* Eyes on fiscal support package talks in EU, U.S.

By Swati Pandey and Sumeet Chatterjee
SYDNEY, July 20 (Reuters) - Asian shares posted gains on
Monday and the euro rose to four-month highs, as EU leaders
appeared to make some headway after three days of haggling on a
plan to revive their economies, even as coronavirus cases
increased in many countries.
Dutch Prime Minister Mark Rutte said EU leaders were making
progress but warned discussions could still fall apart, while
summit chairman Charles Michel urged them to make one last push
on "mission impossible". European markets were set to open higher with pan-region
EuroSTOXX 50 futures STXEc1 , German DAX futures FDXc1 , and
FTSE futures FFIc1 all trading up 0.2%, reversing earlier
losses during Asia trade.
In the United States, E-mini futures for the S&P 500 ESc1
were down 0.5%.
"The commitment by EU leaders in extending talks, and
reports of further talks if no agreement is reached today, shows
the desire to have the recovery fund in some form," said NAB
analyst Tapas Strickland.
However, it was likely to be "a very long and winding road"
before a deal is reached, he added.
EU leaders are at odds over how to carve up a vast recovery
fund designed to help haul Europe out of its deepest recession
since World War Two, and what strings to attach for countries it
would benefit.
Diplomats said it was possible that they would abandon the
summit and try again for an agreement next month.
The euro EUR= rose above $1.1452 to its highest levels
since March.
"This is what we're so used to from Europe ... it was always
going to be a very controversial programme where they needed to
be seen defending the interests of the individual sovereigns.
Ultimately there will be a deal and the market knows that," said
Chris Weston, head of research at Pepperstone in Melbourne.
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS rose 0.3%, reversing loses earlier
in the day, with Chinese markets rising more than 2%.
China stocks jumped 2.5%, led by financial firms, after
regulators moved to bolster the market by lifting the equity
investment cap for insurers and encouraging mergers and
acquisitions among brokerages and mutual fund houses.
Australia's S&P/ASX 200 index .AXJO dropped 0.5% after
authorities warned that a surge in COVID-19 cases in the
country's second most populous state could take weeks to
tame. More than 14 million people have been infected by the novel
coronavirus globally and nearly 602,000 have died, according to
a Reuters tally. South Korea's KOSPI .KS11 pared gains to fall 0.1%, while
Japan's Nikkei .N225 was also down 0.1% after data showed
the country's exports suffered a double-digit decline for the
fourth month in a row in June. In the United States, Congress is set to begin debating a
new aid package this week, as several states in the country's
South and West implement fresh lockdown measures to curb the
virus.
The virus has claimed over 140,000 U.S. lives since the
pandemic started, and Florida, California, Texas and other
southern and western states shatter records for new cases every
day. In currencies, the dollar climbed 0.3% against the Japanese
yen JPY= to 107.28. Sterling fell to $1.2520. The
risk-sensitive Australian dollar AUD=D3 was down 0.1% at
$0.6989.
In commodities, spot gold XAU= eased a tad to $1,807.6 an
ounce to hover near a nine-year top.
Oil prices fell, unnerved by the prospect that a recovery in
fuel demand could be derailed by rising the COVID-19 cases. U.S.
crude CLc1 and Brent LCOc1 were both down 25 cents to $40.34
per barrel and $42.89 per barrel, respectively. O/R
Prices for copper CMCU3 , a barometer of economic growth,
fell on Monday after data showed rising inventories in Chinese
warehouses and on concern the climbing coronavirus cases
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Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Jacqueline Wong and Richard Pullin)