* U.S. stock futures fall 0.2%, Asia shares down
* Trump seen signing HK bills, looks set to anger Beijing
* Trade deal seen delayed into next year - sources
* U.S. bond yield, yuan at 3-week low
* European shares seen falling 0.5-0.7%
By Hideyuki Sano
TOKYO, Nov 21 (Reuters) - Global stocks took a beating on
Thursday as a fresh row between Washington and Beijing over U.S.
legislation on Hong Kong threatened to undermine their trade
talks and delay a "phase one" deal that investors had initially
hoped to be signed by now.
European shares were on course to extend their losses with
pan-European Euro Stoxx 50 futures STXEc1 down 0.62%, German
DAX futures FDXc1 falling 0.68% and Britain's FTSE futures
FFIc1 down 0.48%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 1.2% to a three-week low, with Hong Kong's
Hang Seng .HSI tumbling 1.6% while Japan's Nikkei .N225
dropped 0.4%. Chinese mainland shares dropped 0.3% .SSEC .
U.S. S&P500 futures ESc1 were down 0.15%, having dropped
as much as 0.6% in Asian trade, a day after all three major
indexes fell, with the S&P 500 .SPX losing 0.38%.
The U.S. House of Representatives on Wednesday passed two
bills intended to support protesters in Hong Kong and send a
warning to China about human rights. The legislation, which has angered Beijing, has been sent to
the White House for President Donald Trump's approval. A person
familiar with the matter said Trump was expected to sign it.
"China will surely take this as an interference into its
domestic affairs and is likely to think it will no longer need
to make concessions on trade," said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
The move came as trade experts and people close to the White
House said completion of a "phase one" U.S.-China trade deal
could slide into next year, as Beijing presses for more
extensive tariff rollbacks, and the Trump administration
counters with demands of its own. Trump said on Oct. 11 that the deal could take as long as
five weeks, and investors had initially expected an agreement by
mid-November.
Asked Wednesday about the status of the China deal, Trump
told reporters in Texas: "I don't think they're stepping up to
the level that I want."
Trade jitters sent the 10-year U.S. Treasuries yield down to
1.736% US10YT=RR , near its lowest levels in three weeks and
down nearly 25 basis points from a Nov. 7 peak of 1.973%, a
three-month high.
Similarly in the currency market the yuan hit three-week
lows, trading as low as 7.0450 to the dollar CNY=CFXS in
onshore trade.
The dollar was soft against the yen at 108.59 JPY= ,
compared to this week's high of 109.07 touched on Monday, while
gold held firm at $1,470.2 per ounce XAU= .
The euro was little changed at $1.1077 EUR= .
Tomoo Kinoshita, chief economist at Invesco Asset Management
in Tokyo, said the market is unlikely to completely give up
hopes on the trade deal.
"There have always been some uncertainties in trade talks
but that won't erase positive effects from signs of bottoming
out in the global manufacturing sector," he said.
The minutes from the Federal Reserve's previous policy
meeting published on Wednesday offered little guidance on what
would cause policymakers to change their minds on the outlook
after an increasingly divided Fed decided to hit the pause
button in its easing cycle. Oil prices also dipped, paring some of their 2% gains made
on Wednesday after a better-than-expected U.S. crude inventories
report and as Russia said it would continue its cooperation with
OPEC to keep the market balanced.
Global benchmark Brent futures LCOc1 dropped 0.19% to
$62.28. U.S. West Texas Intermediate (WTI) crude futures CLc1
were down 0.16% at $56.92 per barrel in early Thursday trade.
(Editing by Stephen Coates, Jacqueline Wong & Shri Navaratnam)