FOREX-Yen gains as trade woes, Brexit concerns shake investor confidence

(Adds details and quotes, updates prices)
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Brexit crisis further weighs on risk sentiment, lifts yen
* Rise by dollar index stalls as U.S. yields fall on risk
aversion

By Shinichi Saoshiro
TOKYO, May 23 (Reuters) - The yen advanced broadly on
Thursday as persistent U.S.-China trade fears and Brexit
concerns fanned risk aversion, lifting the safe-haven Japanese
currency.
The yen JPY= was 0.1% firmer at 110.200 to the dollar,
having pulled back from a two-week low of 110.675 plumbed on
Tuesday.
The Japanese currency also rose 0.15% against the euro
EURJPY= , added 0.2% versus pound GBPJPY= and advanced 0.3%
on the Australian dollar AUDJPY= .
Reports that the United States could impose restrictions on
Chinese technology company Hikvision renewed market jitters
about trade on Wednesday, reversing a relief rally that followed
Washington's move to temporary ease curbs against Huawei
Technology Co Ltd HWT.UL . A deepening Brexit crisis also sapped investor risk
sentiment. Pressure on British Prime Minister Theresa May to
resign increased after her new Brexit gambit backfired and as a
key ally resigned from her cabinet. "While the currency market appears to have mostly priced in
May's eventual resignation, it is now trying to work out who
might replace her," said Yukio Ishizaki, senior currency
strategist at Daiwa Securities.
"The possibility of someone like Boris Johnson replacing May
will heighten prospects of a no-deal Brexit and likely lead to
further 'risk off.' The mood in the market is darkening as the
Brexit ongoings add to prevailing U.S.-China worries."
The pound GBP=D4 dipped 0.07% to $1.2652 after slipping to
$1.2625 overnight, its lowest since Jan. 4.
The dollar index against a basket of six major currencies
.DXY was little changed at 98.105, its rise earlier in the
week to a one-month high of 98.134 stalling as U.S. yields
declined amid the risk aversion.
"News related to the stand-off between the United States and
China will remain the main driver of currencies," said Junichi
Ishikawa, senior FX strategist at IG Securities in Tokyo.
In particular focus are headlines that could be negative for
the technology sector, which in turn would lift the yen and the
Swiss franc, he said.
The Swiss franc CHF= , a safe-haven along with the yen, was
a shade higher at 1.008 francs per dollar after advancing 0.15%
on Wednesday.
The euro EUR= was flat at $1.1150, in close range of a
2-1/2-week low of $1.1142 brushed on Tuesday ahead of the May
23-26 European parliamentary election.
The German and euro zone manufacturing purchasing managers'
index (PMI) releases due later on Thursday may impact the single
currency.
The Australian dollar AUD=D4 , sensitive to shifts in risk
sentiment, nudged down 0.2% to $0.6870.