* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Brexit confusion keeps some investors sidelined
* Pound down after delay to a crucial vote on Brexit
* Oil extends fall due to worries about global economy
By Stanley White
TOKYO, Oct 21 (Reuters) - Asian stocks were steady in a
cautious start to the week on Monday, while the British pound
fell following a delay to a crucial vote on Britain's divorce
from the European Union.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS were flat, with Australian shares .AXJO off
down 0.3%. Japan's Nikkei .N225 rose 0.13%.
The Brexit maelstrom, worries over slowing global growth and
international trade frictions have kept investors on edge over
recent months. Oil futures fell as lingering economic growth
concerns and excess supplies of crude prompted speculators to
trim their long positions.
The pound slipped from a five-month high against the dollar
and the euro after the British parliament forced Prime Minister
Boris Johnson to seek a delay to an Oct. 31 deadline for
Britain's departure from the bloc.
The vote for an extension dealt a blow to optimism that a
deal agreed last week would ensure Brexit happens with little
economic disruption. While the British government insisted Brexit will take place
on Oct. 31, uncertainty over whether the EU will agree a delay
and how British lawmakers will respond could weigh on sentiment
over the week.
"There is some uncertainty about Brexit, but it may not
rattle investors too much because this is not an outright
rejection of the deal," said Michael McCarthy, chief market
strategist at CMC Markets in Sydney.
"Trading volumes are around 40% of what they would normally
be, which shows there's not a lot of conviction in the market."
The pound GBP=D3 fell 0.7% to $1.2908 and was off about
0.4% to 86.50 per euro.
U.S. stock futures ESc1 nudged 0.06% higher in Asia as
investors brace for high-profile earnings this week from
Microsoft Corp MSFT.O , Amazon.com AMZN.O and others.
The S&P 500 fell 0.4% on Friday partly due to worries about
fallout from the U.S.-China trade war.
A 15-month long trade war between the United States and
China has shown few signs of a durable resolution being reached
despite several rounds of talks.
Financial markets have been whipsawed over this period as a
steady increase in tit-for-tat tariffs have slowed global trade
and raised the risk of recession for some countries.
Underscoring the damage, Japan's exports fell in September
for the 10th straight month, while South Korea's exports for the
first 20 days of October dived 19.5% year-on-year, data on
Monday showed. Elsewhere in the currency markets, the dollar edged 0.1%
higher to $1.1158 per euro EUR=EBS but held steady at 108.45
yen JPY=EBS as investors pondered the shifting scenarios for
Brexit.
U.S. crude CLc1 fell 0.45% to $53.54 per barrel.
Money managers cut their net long U.S. crude futures and
options positions in the week to Oct. 15, the U.S. Commodity
Futures Trading Commission (CFTC) said on Friday.
Long bets on U.S. crude have dropped sharply in the last two
weeks after a spate of weak economic figures worldwide fanned
concerns about global energy demand.
Treasury prices rose in Asia as investors sought safe
havens. The yield on benchmark 10-year Treasury notes
US10YT=RR fell to 1.7414%, while the two-year yield US2YT=RR
fell to 1.5675%.
Gold XAU= , another safe-haven asset, edged 0.11% higher to
$1,491.28 per ounce.
(Editing by Shri Navaratnam)