* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Nikkei futures rise, trade thin with Tokyo on holiday
* Shares up on relief at Sino-U.S. trade progress
* But caution as China export, import data disappoint
* Sterling rally pauses as EU summit looms over Brexit
By Wayne Cole
SYDNEY, Oct 14 (Reuters) - Asian share markets firmed on
Monday as signs of progress in the Sino-U.S. trade standoff
whetted risk appetite, though investors were wary of the damage
already done to the global economy.
Indeed, data out from China underlined the pain felt with
dollar-denominated exports and imports both falling by more than
expected in September. Liquidity was also lacking with Japan off and a partial
market holiday in the United States for Columbus Day. MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 1.1% in light trade.
Australia's main index gained 0.7% .AXJO and South Korea
.KS11 1.3%. Shanghai blue chips .CSI300 added 1.6%.
While Tokyo was on holiday, Nikkei futures were trading at
22,075 NKc1 compared with a Friday close of 21,798 in the
Nikkei cash index. E-Mini futures for the S&P 500 ESc1 nudged
up 0.2% after jumping on Friday.
Sentiment had been boosted when U.S. President Donald Trump
outlined the first phase of a deal to end a trade war with China
and suspended a threatened tariff hike, though officials on both
sides said much more work needed to be done. The emerging deal, covering agriculture, currency and some
aspects of intellectual property protections, would represent
the biggest step by the two countries in 15 months.
Analysts, however, advised caution.
"We have seen a truce established, and then broken, before,"
said Tai Hui, chief market strategist for Asia at JPMorgan Asset
Management.
"The threat to global growth is weak corporate capex, and
potentially spilling over into the consumer sector," Hui added.
"CEOs are not going to restart investing again merely because of
the latest round of agreement between the two sides."
The drag from the trade war was a major reason Singapore's
central bank eased monetary policy on Monday for the first time
in three years as data showed the city-state's economy had only
narrowly dodged recession. WEEK FOR BREXIT
The progress on trade was still enough to slug safe-haven
bonds with yields on U.S. 10-year Treasury notes climbing 23
basis points last week to stand at 1.74% US10YT=RR .
The yield curve also steepened as short-term rates were held
down by news the Fed would start buying about $60 billion per
month in Treasury bills to ensure "ample reserves" in the
banking system. The rally in risk assets had seen the yen ease across the
board, leaving the dollar holding at 108.32 JPY= on Monday
after hitting a 10-week top around 108.61 on Friday.
The dollar fared less well elsewhere, partly due to a jump
in sterling, and was last at 98.435 against a basket of
currencies .DXY after losing 0.5% last week.
The dollar also slipped on the Chinese yuan to stand at
7.0646 CNY= .
The pound was trading cautiously at $1.2598 GBP= having
surged to a 15-week high around $1.2705 on Friday on optimism
Britain could reach a deal on Brexit with the European Union.
However, officials from Downing Street and the EU said on
Sunday a lot more work would be needed to secure an agreement on
Britain's departure from the bloc. The two sides will hold more talks on Monday ahead of a
summit of EU leaders in Brussels on Thursday and Friday.
The general improvement in risk sentiment saw spot gold ease
another 0.2% to $1,486.85 per ounce XAU= .
Oil prices pared gains made on Friday when reports surfaced
that an Iranian state-owned oil tanker had been attacked in the
Red Sea. O/R
Investors were also anxiously watching Turkey's incursion
into Syria as the White House threatened to impose heavy
sanctions on Ankara. Brent crude LCOc1 futures eased 31 cents at $60.20, while
U.S. crude CLc1 lost 30 cents to $54.40 a barrel.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Jacqueline Wong and Sam Holmes)