* Investors wary as trade deadline draws closer
* Nikkei flat, ASX drifts higher
* Pound wobbles as projected Conservative majority shrinks
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook
SINGAPORE, Dec 11 (Reuters) - Asian stocks drifted on
Wednesday as Sino-U.S. trade talks showed little progress ahead
of a weekend deadline for the imposition of additional U.S.
tariffs, and the pound wobbled as opinion polls pointed to a
tight British election on Thursday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS drifted 0.1% higher, as markets in the region
wavered either side of flat. Japan's Nikkei .N225 traded 0.2%
lower, Australia's S&P/ASX 200 .AXJO rose by the same margin.
Shanghai blue chips .CSI300 added 0.1%. U.S. stock futures
ESc1 were 0.1% lower.
Faced with often conflicting reports, investors have begun
to suspect that even if U.S. tariffs due to take effect on
Sunday are delayed, it could take until 2020 before Washington
and Beijing can agree a preliminary deal to wind back their
trade war.
"Every day we get a little bit of a nudge one way or the
other," said Rob Carnell, Asia-Pacific chief economist at ING in
Singapore. "You just don't know who to believe, whether these
comments have any basis in reality or whether they're a
negotiating tactic."
In the absence of harder news on the trade front, investors'
focus was locked on the U.S. Federal Reserve's policy meeting
and its outlook for the economy due at 2000 GMT, as well as
Britain's election.
The Fed is widely expected to hold rates steady, with
investors interested in whether the central bank changes its
view of the economy and its 2% growth forecast for next year.
U.S. inflation data due at 1330 GMT, expected to hold
steady, may further reduce chances for rate cuts next year
should it surprise on the upside.
The biggest mover of the morning among currencies was the
British pound, which shed 0.3% to hit $1.3128 after a closely
watched YouGov poll showed the ruling Conservatives tracking
toward a much slimmer majority than forecast a fortnight ago.
The pound recouped some losses during the day, but still sat
well under the eight-month high struck overnight, when investors
were more confident of a Conservative victory and expected it
could end uncertainty over Britain's exit from the European
Union.
YouGov's research director, however, said the results showed
a hung parliament was possible.
"Granted, this still portrays a Tory (Conservative) majority
but given what is already priced ... the actual outcome has
resulted in some of the heat coming out of a fairly frothy
market," said Chris Weston, head of research at Melbourne
brokerage Pepperstone.
TRADE STALEMATE
While China and the United States have still to settle
differences on trade, officials from Canada, Mexico and the
United States signed a fresh overhaul of the quarter-century-old
North American trade pact. A Wall Street Journal report that said U.S. and Chinese
officials were preparing for a delay to the Dec. 15 round of
tariffs knocked bonds but did not shift stocks since it
suggested no resolution to the trade conflict. White House trade adviser Peter Navarro said on Tuesday that
U.S. President Donald Trump would make a decision soon on
whether to enforce or suspend the tariffs.
Overnight the Dow Jones Industrial Average .DJI and the
S&P 500 .SPX each fell 0.1%, while the Nasdaq .IXIC dropped
by a little less.
The yield on benchmark 10-year Treasury notes US10YT=RR ,
which moves inversely to price, last stood a little higher at
1.8329%.
Elsewhere among currencies, the dollar nursed overnight
losses against the euro after German economic sentiment sharply
rose after an unexpected rebound in October exports.
The kiwi dollar NZD=D3 drifted 0.3% lower to $0.6526 as
the government trimmed its growth forecasts and announced a
long-term fiscal spending program. U.S. crude CLc1 dipped 0.5% to $58.92 a barrel, while gold
was steady XAU= at $1464.80 per ounce. O/R GOL/