GLOBAL MARKETS-Asia shares given pause by Tokyo lockdown talk

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei off 30-year high on report of Tokyo emergency
* Dollar under pressure as U.S. deficits swell
* Factory surveys, U.S. jobs and Fed minutes all ahead

By Wayne Cole
SYDNEY, Jan 4 (Reuters) - Asian share markets hit pause on
Monday as reports of a possible tightening in coronavirus
emergency rules for Tokyo pulled Japanese stocks off 30-year
highs, while also lifting the safe-haven yen.
Investors are still counting on central banks to keep money
super cheap while the rollout of coronavirus vaccines helps
revive the global economy over time, but much of that optimism
is already priced in and the virus is not cooperating.
Japan's Nikkei .N225 shed its early gains to fall 1.1%
when Fuji TV reported the government was considering a state of
emergency for capital Tokyo and three surrounding prefectures.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS edged up 0.1%, a whisker from a record high.
E-Mini futures for the S&P 500 ESc1 dipped 0.2% after
touching a new all-time top in early trade.
Investors are cautiously watching runoff elections in
Georgia for two U.S. Senate seats on Tuesday that will determine
which party controls the Senate. If the Republicans win one or both, they will retain a slim
majority in the chamber and can block President-elect Joe
Biden's legislative goals and judicial nominees.
"If Democrats win both races, Vice President-elect Kamala
Harris would be the tiebreaking vote, giving the party unified
control of the White House and Congress," noted analysts at CBA.
"This would raise the likelihood a material U.S.
infrastructure spending package gets fast tracked through
Congress."
Minutes of the Federal Reserve's December meeting due on
Wednesday should offer more detail on discussions about making
their forward policy guidance more explicit and the chance of a
further increase in asset buying this year.
The data calendar includes a raft of manufacturing surveys
across the globe, which will show how industry is coping with
the spread of the coronavirus, and the closely watched ISM
surveys of U.S. factories and services.
A survey showed Japan's factory activity stabilised for the
first time in two years in December, while activity in Taiwan
picked up. Friday sees the U.S. December payroll report where median
forecasts are for only a modest increase of 100,000.
Analysts as Barclays are tipping a fall of 50,000 in jobs,
which would be a shock to market hopes of a speedy recovery.
"A number of incoming indicators on activity point to slower
momentum as the economy closes out the year, including data on
labour markets where initial claims rose during the December
survey period," said economist Michael Gapen in a note.
Such a drop would add pressure on the Fed to ease further,
another burden for the dollar which is already buckling under
the weight of the massive U.S. budget and trade deficits.
The dollar index was last at 89.786 =USD , not far from its
recent 2-1/2-year low of 89.515 having shed almost 7% in 2020.
The euro inched up to $1.2245 EUR= , having run into profit
taking late last week when it reached the highest since early
2018 at $1.2309. It gained almost 9% over 2020.
The dollar slipped to 103.02 yen JPY= , and looked in
danger of testing key support at 102.55. Sterling was firm at
$1.3674 GBP= , within spitting distance of its recent top of
$0.13686.
The decline in the dollar has been a support for gold,
leaving the metal 0.6% firmer at $1,910 an ounce XAU= .
Oil prices have steadied after a couple of months of solid
gains, with Brent meeting resistance around $52.50 a barrel.
The rebound still left Brent down 21.5% for the year, and WTI
20.5%. O/R
On Monday, Brent crude LCOc1 futures fell 8 cents to
$51.72, while U.S. crude CLc1 eased 12 cents to $48.40 a
barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Jane Wardell)