* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei futures rise, trade thin with Tokyo on holiday
* Yen, bonds nurse losses on Sino-U.S. trade progress
* Sterling rally pauses as EU summit looms over Brexit
By Wayne Cole
SYDNEY, Oct 14 (Reuters) - Asian share markets pushed higher
on Monday as signs of progress in the Sino-U.S. trade standoff
whetted risk appetites, while pressuring safe-haven bonds and
the yen.
Liquidity was lacking, however, 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 edged up 0.5%.
Australia's main index gained 0.9% .AXJO and South Korea
.KS11 firmed 1.3%.
While Tokyo was on holiday, Nikkei futures were trading at
22,105 NKc1 compared with a Friday close of 21,798 in the
Nikkei index. E-Mini futures for the S&P 500 ESc1 also added
another 0.36% 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.
"The substance is more in the vein of an extension of the
truce – though that was the best the market could have hoped
for," said Tapas Strickland, a director of economics and markets
at National Australia Bank.
"Still, it is unlikely the 'partial deal' will do much to
give certainty to firms investment and hiring decisions in the
U.S. or elsewhere," he cautioned. "As such it is still likely
trade uncertainty will weigh on economic activity, and the Fed
will cut rates to ward-off the headwinds."
Futures imply around a 72% chance the Federal Reserve will
cut interest rates at its meeting later this month. FEDWATCH
BIG 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 saw the yen ease across the board
and the dollar was steady at 108.40 JPY= early 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 98.431 against a basket of
currencies .DXY after losing 0.5% last week.
The dollar also dipped on the Chinese yuan to stand at
7.0868 CNY= .
The pound was trading cautiously at $1.2608 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 0.4% to $1,483.90 per ounce XAU= .
Oil prices steadied after jumping on reports 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 were up 8 cents at $60.59, while
U.S. crude CLc1 rose 9 cents to $54.79 a barrel.
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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(Editing by Jacqueline Wong)