FOREX-Yen holds gains as weak China data overshadows Trump's trade concession

* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Risk-off rally runs out of steam in Asia
* Yen edges higher against major currencies
* FX analysts sceptical about Trump's concession on trade

(Adds trader's quote)
By Stanley White
TOKYO, Aug 14 (Reuters) - The yen held onto gains on
Wednesday as weaker-than-expected Chinese economic data
reinforced the view that resolving the trade war was a long way
off even if U.S. President Donald Trump had delayed some
additional tariffs.
The offshore yuan remained lower against the dollar after
China's closely watched industrial output rose in July at the
slowest pace in more than 17 years. The onshore yuan rose
against the dollar, taking its cue from a stronger fixing.
News the United States would delay some tariffs supported
Asian stocks, but optimism in the currency market quickly faded
on broader concerns there are no quick solutions to the trade
row, which economists say is dragging on China's economy and
threatening global growth.
Increasingly violent clashes between protesters and police
in Hong Kong, worries about Britain's exit from the European
Union, and Middle East tensions mean risk aversion could quickly
flare up again and roil major currencies.
"The mid-term trend is for yen gains, because the United
States has not changed its tough stance on China," said Shuntaro
Ikeshima, chief manager of forex and financial products trading
at Mitsubishi UFJ Trust and Banking Co.
"There was a lot of short-covering overnight, but in Asia
the market quickly ran into real demand to buy yen. Once you
added the Chinese data, this managed to keep the yen firm."
The dollar pared some of its losses but was still down 0.3%
at 106.48 yen JPY=EBS in Asia.
The Australian dollar fell 0.2% to 72.45 yen AUDJPY= ,
while the pound fell 0.2% to 128.50 yen GBPJPY= .
Against the offshore yuan CNH=D4 , the dollar rose 0.3% to
7.0331 yuan. However, in the onshore market, the yuan CNY=CFXS
rose to 7.0177 per dollar, stronger than its previous close at
7.0558.
On Tuesday, U.S. President Donald Trump backed off of his
Sept. 1 deadline for 10% tariffs on remaining Chinese imports,
delaying duties on cellphones, laptops and other consumer goods,
in the hopes of blunting their impact on U.S. holiday sales.
Still, trade negotiations between the United States and
China have progressed in fits and starts, so many investors and
analysts have scaled back expectations for a resolution in the
near term.
China's industrial output in July rose 4.8% from a year
earlier, which was below the median estimate for a 5.8%
year-on-year increase and marked the slowest growth since
February 2002, data showed on Wednesday. Retail sales and fixed-asset investment in July also grew
less than forecast, highlighting concerns the trade war is
damaging the health of the world's second-largest economy.
The dollar index .DXY , measuring the greenback against a
basket of six currencies, was little changed at 97.755 after
jumping 0.4% on Tuesday.
Hong Kong's airport resumed operations on Wednesday,
rescheduling hundreds of flights that had been disrupted this
week as protesters clashed with riot police in a deepening
crisis in the Chinese-controlled city. Ten weeks of increasingly violent clashes between police and
pro-democracy protesters, angered by a perceived erosion of
freedoms, have plunged the Asian financial hub into its worst
crisis since it came under Chinese rule from Britain in 1997.
The euro EUR=EBS was unchanged at $1.1172, but fell 0.2%
to 119.07 yen EURJPY=EBS .
European data on consumer prices and GDP is due from Europe
later on Wednesday and could shape the near-term direction of
the common currency.
Sterling was little changed at $1.2061 GBP=D3 , but
remained within striking distance of $1.2015, the lowest level
since January 2017.
Britain will release consumer price data later on Wednesday,
but uncertainty about how Britain will exit the European Union
has clouded the outlook for the Bank of England's monetary
policy.

(Editing by Neil Fullick and Jacqueline Wong)