* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Brexit vote boosts global shares
* HK tension eases for now, but concerns remain
* Oil pulls back in Asia after strong rally overnight
By Stanley White
TOKYO, Sept 5 (Reuters) - Asian stocks perked up on
Thursday, as apparent progress in the political crises in
Britain and Hong Kong gave investor confidence a shot in the
arm, with easing fears of a hard Brexit lifting the battered
pound.
Sterling held onto gains against the dollar in Asia after
rallying by its most in more than five months on Wednesday as
lawmakers voted to prevent Prime Minister Boris Johnson taking
Britain out of the European Union without a deal on Oct.
31. Risk appetite also rose on news that Hong Kong leader Carrie
Lam was withdrawing an extradition bill that had triggered
months of often violent protests in the Asian financial
hub. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.24%. U.S. Treasury yields extended
gains in Asia and the yield curve steepened, both signs that
investors were willing to take on riskier assets.
Still, there was scepticism over how long the positive mood
would last with Britain's divorce from the EU and political
unrest in Hong Kong not yet completely resolved.
"In a world of negative news, a bunch of things came
together and we had something positive," said Shane Oliver, head
of investment strategy and chief economist at AMP Capital
Investors in Sydney.
"We should see some follow through in Asia. There is reduced
risk of a no-deal Brexit, but Brexit is still all over the
place. Some protesters in Hong Kong say they're still not
satisfied."
Shares rallied on Wednesday in New York, with the S&P 500
.SPX gaining 1.08%.
U.S. stock futures ESc1 fell 0.03% in early Asian trade,
but a 1.09% increase in Japan's Nikkei .N225 and 0.33%
increase in Australian shares .AXJO highlighted the
improvement in market sentiment.
The 10-year yield US10YT=RR rose to 1.4758%, while
two-year yields US2YT=RR rose to 1.4519%.
The spread between two- and 10-year Treasury yields
US2US10=TWEB , the most commonly used measure of the yield
curve, rose to its highest since Aug. 21 on Wednesday but
narrowed slightly in Asian trade.
The curve inverted on Aug. 14 for the first time since 2007
when long-term yields traded below short-term yields, which is a
widely accepted indicator of coming recession.
More than three years since the United Kingdom voted 52-48%
to leave the EU, it is still unclear on what terms, or indeed
whether, Brexit will take place on the Oct. 31 deadline.
The global economy is already struggling with the threat of
recession due to a bruising trade war between the United States
and China.
Blocking the path to a no-deal Brexit relieves concern about
another potential drag on global growth, but Britain is still
headed for a snap election, which could introduce more political
uncertainty about who will lead Britain out of the EU.
Hong Kong leader Carrie Lam on Wednesday withdrew an
extradition bill that had triggered months of often violent
protests in the Chinese-ruled city, sparking a late rally in
Hong Kong stocks. Traders will watch closely to see whether shares in Hong
Kong .HSI are able to extend those gains or whether they fall
on concerns about relations with Beijing.
U.S. West Texas Intermediate crude CLc1 lost 0.34% to
$56.07 per barrel in Asia on Thursday. Crude futures surged 4.3%
on Wednesday, the biggest daily gain since July 10, due to
positive economic data from China and easing geopolitical
concerns.
(Editing by Sam Holmes)