GLOBAL MARKETS-Asia stocks sag ahead of China data, Gulf attacks support oil

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* European stocks expected to open slightly higher
* MSCI Asia-Pacific index dips 0.3%, Nikkei adds 0.3%
* Market focus on China industrial production, retail sales
* Caution seen prevailing ahead of Fed's meeting next week
* Spot gold near 14-month highs

By Shinichi Saoshiro
TOKYO, June 14 (Reuters) - Asian stocks sagged on Friday
ahead of key Chinese data that could provide more clues on how
heavily the U.S.-Sino trade war is weighing on the economy,
while oil prices were supported by supply concerns after attacks
on tankers in the Gulf of Oman.
European shares looked to set open slightly higher, however,
following overnight Wall Street gains. Pan-region Euro Stoxx 50
futures STXEc1 were up 0.09%, German DAX futures FDXc1 edged
up 0.1% and Britain's FTSE futures FFIc1 added 0.18%.
China will release May industrial production along with
retail sales and investment numbers at 0700 GMT, and analysts
expect any improvement from April's downbeat readings will be
mostly marginal.
Economists polled by Reuters expect industrial production in
China to have risen 5.5% in May from 5.4% in April and believe
retail sales increased 8.1% from 7.2% the previous month.
But even if the data is better than forecast, expectations
of more stimulus in China are growing as the Sino-U.S. trade
dispute threatens to escalate into a full-blown trade war that
could push the global economy into recession. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS edged down 0.3%.
For the week, it was headed for a gain of 0.9%, as global
stock markets were lifted by factors including expectations for
Federal Reserve rate cuts and relief over a U.S.-Mexico
immigration deal that averted damaging tariffs.
Despite expectations that Beijing will announce more support
measures soon, nervousness ahead of the activity data and
worries over trade pushed the Shanghai Composite Index .SSEC
down 0.3%. But Australian stocks .AXJO added 0.15% and Japan's
Nikkei .N225 climbed 0.3%.
"Risk assets have been struggling for direction as competing
themes battle to decide the tone of global risk sentiment,"
wrote strategists at ANZ.
"On one hand, the prospect of Fed easing assuages some fear
of a global slowdown, but on the other hand trade issues still
present downside risk."
U.S. stocks rose on Thursday after two days of declines,
with energy shares rebounding on the back of crude oil's surge.
.N
Wall Street shares have had a strong run in June on hopes
the Federal Reserve will ease monetary policy soon to counter
pressure on the U.S. economy from the escalating trade war. The
S&P 500 .SPX index is up about 5% so far for the month.
The Fed's June 18-19 meeting will give investors an
opportunity to see if the Fed's monetary policy stance is in
sync with market expectations for a near-term rate cut.
A Reuters poll this week showed a growing number of
economists expect a Fed rate cut this year but the majority
still expect it to stay on hold. "There is a large degree of uncertainty going into next
week's FOMC (Federal Reserve Open Committee) meeting as market
reaction will differ significantly depending on whether the Fed
hints toward easing policy," said Shusuke Yamada, chief Japan FX
and equity strategist at Bank Of America Merrill Lynch.
"A wait-and-see mood is likely to begin prevailing in the
markets ahead of the FOMC."
In commodities, Brent crude futures LCOc1 rose 0.6% to
$61.69 per barrel after rallying 2.3% the previous day.
Brent surged on Thursday after two oil tankers were attacked
in the Gulf of Oman, one Norwegian-owned and the other
Japanese-owned.
The United States has blamed Iran for the assaults. But U.S.
and European security officials as well as regional analysts
left open the possibility that Iranian proxies, or someone else
entirely, might have been responsible. U.S. crude CLc1 gained 0.35% to $52.46 per barrel after
rising more than 2 percent on Thursday.
The dollar index .DXY against a basket of six major
currencies was little changed at 97.074 after ending the
previous day nearly flat, with caution ahead of the next week's
Fed meeting keeping the greenback in a tight range.
The euro was steady at $1.1273 EUR= while the greenback
inched down 0.05% to 108.345 yen JPY= .
The Australian dollar AUD=D4 extended overnight losses and
fell to a three-week low of $0.6892.
The Aussie has lost 1.4% this week, during which soft
domestic labour data added to expectations of a rate cut by the
Reserve Bank of Australia.
Spot gold XAU= advanced towards a 14-month high of
$1.348.08 an ounce hit last week as trade and political
concerns, along with U.S. rate cut expectations, lifted the
precious metal. GOL/

(Editing by Simon Cameron-Moore & Kim Coghill)