* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei and S&P 500 futures little changed
* Markets await BOJ meeting, Trump speech at Davos
* Major currencies hold to tight ranges
By Wayne Cole
SYDNEY, Jan 21 (Reuters) - Asian shares got off to a
cautious start on Tuesday lacking any lead from Wall Street and
after the IMF shaved its outlook for world growth this year,
though it did offer a brighter view on China.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was fractionally down 0.04%
Moves elsewhere were likewise modest, with Japan's Nikkei
.N225 down 0.1% and South Korea .KS11 0.04%. E-Mini futures
for the S&P 500 ESc1 eased 0.05%.
Overnight, the International Monetary Fund trimmed its
global growth forecasts, mostly due to a surprisingly sharp
slowdown in India and other emerging markets, even as it said
that a U.S.-China trade deal could see activity bottom out.
The IMF now sees growth at 3.3% this year, down from 3.4%
and also cut the 2021 forecast to 3.4% from 3.6%. Yet it still
lifted the outlook for China to 6%. There was some relief U.S. President Donald Trump and French
President Emmanuel Macron seemed to have struck a truce over a
proposed digital tax. The two agreed to hold off on a potential tariffs war until
the end of the year, a French diplomatic source said.
Trump is due to deliver a speech at the World Economic Forum
in Davos later on Tuesday, and trade and tariffs could be on the
agenda.
Also due later is the outcome of the Bank of Japan's latest
policy meeting. Richard Grace, head of international economics at
Commonwealth Bank of Australia, expects no further easing in
policy in part because the government has launched fresh fiscal
package worth around 1% of GDP.
"Also, Japan's 10-year government bond yield has been
steadily lifting since declining to -29bp in late August 2019,
and at 0.00%, is at a more than a twelve-month high," he added.
"It suggests a reasonable outlook for Japan's economy."
With the U.S. economy still outperforming its peers, the
dollar remained well supported albeit in quiet trade.
The dollar was steady on the yen at 110.17 JPY= just off
an eight-month top of 110.28, while the euro was stuck near
recent lows at $1.1093 EUR= .
Against a basket of currencies, the dollar was steady at
97.593 .DXY after touching a four-week high at 97.579.
Spot gold edged up to $1,561.35 per ounce XAU= , and back
toward a seven-year peak of $1,610.90 reached last week.
Oil prices rose to their highest in more than a week after
two large crude production bases in Libya began shutting down
amid a military blockade, risking reducing crude flows from the
OPEC member to a trickle. O/R
Brent crude LCOc1 futures firmed 37 cents to $65.22 a
barrel, while U.S. crude CLc1 rose 17 cents to $58.71.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Shri Navaratnam)