* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Traders around the world brace for British election
* Trump to meet advisers on China tariffs
* Dovish Powell comments hurt dollar
* Treasury yields rebound in Asia
By Stanley White
TOKYO, Dec 12 (Reuters) - Asian stocks rose on Thursday to
the highest in a month after the Federal Reserve signalled rate
settings were likely to remain accommodative, but the imminent
UK election and a deadline for Sino-U.S. trade talks kept
investors cautious.
The Fed kept interest rates unchanged, as expected, at its
policy meeting on Wednesday but indicated interest rates would
remain on hold, which nudged Wall Street stocks higher.
That helped MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS climb 0.8% to the highest since
Nov. 11. Japan's Nikkei stock index .N225 rose 0.18% and U.S.
stock futures ESc1 edged up 0.1%. Australian shares .AXJO
were down 0.7%, however, weighed by the financial sector after a
money-laundering scandal.
"The Fed's accommodative stance does support equities, but
the chance of a disruptive election outcome in Britain is very
real," said Michael McCarthy, chief market strategist at CMC
Markets in Sydney.
"You also have the U.S.-China trade problem. We're likely to
see subdued trading and some investors may lock in profits as
the day progresses."
The S&P 500 .SPX rose 0.29% on Wednesday after the Fed's
rate decision, which included enough dovish tones to cheer
markets.
Traders are bracing for a series of make-or-break events
over the next few days that have the potential to cause huge
swings in financial markets for months to come.
Sterling traded near the highest in more than two years
versus the euro and close to an eight-month high versus the
dollar before voting begins in an election that will determine
whether Britain exits the European Union in an orderly fashion.
Polls show the Conservatives' lead shrinking ahead of an
election starting later on Thursday, which could jeopardise
chances of a smooth Brexit.
Exit polls for Britain's election will begin around 2200 GMT
after voting closes, then official results will begin to trickle
UK Prime Minister Boris Johnson's ruling Conservative Party
is running on a pledge to enact a swift split from the EU,
ending more than three years of uncertainty.
Traders say a hung parliament or a victory for the main
opposition Labour Party could cause huge disruptions because
Labour is promising another referendum on membership of the
bloc. Against the euro, sterling EURGBP=D3 rose 0.1% to 84.26
pence, close to its firmest level since May 2017. The pound
GBP=D3 rose 0.2% to $1.3225, just shy of its highest since
March.
The euro EUR=EBS traded at $1.11405, close to a five-week
high before a European Central Bank meeting later on Thursday
where policymakers are expected to keep rates on hold.
Chinese shares .CSI300 slipped 0.06%. Activity was subdued
as investors awaited more news about the Sino-U.S. trade war.
U.S. President Donald Trump is expected to meet Thursday
with top advisers to discuss tariffs on nearly $160 billion of
Chinese consumer goods that are scheduled to take effect on Dec.
15, three sources told Reuters. Trump is expected to go ahead with the tariffs, a separate
source told Reuters, which could scuttle efforts to end a
17-month long trade dispute between the world's two-largest
economies.
The dollar index .DXY against a basket of six major
currencies fell 0.35% to 97.076, approaching a four-month low
reached on Wednesday after Powell it would take a significant
pick-up in inflation to cause the Fed to raise rates.
Treasury yields initially fell in reaction to Powell's
comments, but they rebounded slightly in Asia. The yield on
benchmark 10-year Treasury notes US10YT=RR rose to 1.8017%.
U.S. crude CLc1 edged up 0.24% to $58.90 a barrel. Brent
crude LCOc1 rose 0.46% to $64.01 per barrel. A report by OPEC
released on Wednesday suggested that oil markets are tighter
than previously thought. Traders are also focused on state oil company Saudi Aramco
2222.SE , whose shares surged the maximum permitted 10% above
their IPO price on their Riyadh stock market debut on Wednesday,
making it the world's most valuable listed company.
(Editing by Sam Holmes and Jacqueline Wong)