* MSCI Asia ex-Japan +1.3%; Nikkei +1.1%
* Most European shares seen higher; pound resumes climb
* Oil surges after explosion on Iranian oil tanker
* Trump says U.S.-China negotiations "very, very good"
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Oct 11 (Reuters) - Asian shares jumped on Friday
after U.S. President Donald Trump said he would meet with
China's top trade negotiator, stirring hopes for an agreement,
while sterling resumed its climb amid optimism over a possible
Brexit deal.
European shares were mostly expected to continue the rally.
Pan-region Euro Stoxx 50 futures STXEc1 rose 0.26% to 3,494
and German DAX futures FDXc1 gained 0.29% to 12,209. FTSE
futures FFIc1 were down 0.43% at 7,142.5 early in the day.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS advanced 1.3% on Friday afternoon in Asia. S&P
e-mini futures ESc1 added 0.45%.
Australian shares .AXJO climbed 0.9%, while Japan's Nikkei
stock index .N225 gained 1.1%. Chinese blue-chips .CSI300
were up nearly 1% after a slow start.
The bullish market mood came after a first day of trade
talks between top U.S. and Chinese negotiators, characterised by
Trump as "very, very good."
A White House official said the talks had gone "probably
better than expected" and a U.S. Chamber of Commerce official
briefed by both sides raised the possibility of a currency
agreement this week. Even before Trump's comments, hopes for an agreement helped
to lift U.S. markets. The Dow Jones Industrial Average .DJI
added 0.57%, the S&P 500 .SPX gained 0.64% and the Nasdaq
Composite .IXIC rose 0.6%.
But while optimism around trade talks helped to drive a
"classic risk-on session" overnight, the lack of runaway
enthusiasm reflected broader investor caution, said Matt
Simpson, senior market analyst at GAIN Capital in Singapore. "We
know that it's just a few words from Trump."
Further positive developments in trade talks could boost
markets on Monday, but low expectations for a deal mean that the
lack of an agreement would not "necessarily (be) the end of the
world for risk," he added.
Analysts at National Australia Bank said freezing tariffs at
current levels would be unlikely to reverse the trade-driven
slowdown in economic growth.
"The uncertainty around unresolved structural issues such as
IP (intellectual property) theft and subsidies to state owned
enterprises are likely to remain deterrents for a pick-up in
much needed capital expenditure. On this score details on a
potential currency pact will be important," they said in a
morning note.
On Friday, the dollar was little changed against the yen at
107.98 JPY= , while the euro gained 0.1% to buy $1.1017. The
pound, which had earlier given up some of the previous day's
gains, turned higher, adding 0.1% to $1.2455.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was down at 98.636 after posting
its biggest daily drop in five weeks on waning safe-haven demand
for the currency.
The British pound had jumped nearly 2% on Thursday, its
biggest daily gain since March, after Irish Prime Minister Leo
Varadkar said a Brexit deal could be clinched by the end of
October after what he called a very positive meeting with his
British counterpart, Boris Johnson. The move away from safe havens also lifted the yield on
benchmark 10-year Treasury notes US10YT=RR to 1.6699% compared
with a U.S. close of 1.656% on Thursday. Yields rose across the
curve, with two-year notes US2YT=RR yielding 1.5486% compared
with a U.S. close of 1.53%.
In commodity markets, oil prices extended gains on news of
an explosion on an Iranian tanker in the Red Sea. Prices had
climbed earlier after the head of OPEC said the organisation
could take action to balance oil markets, including a deeper cut
in oil supplies, and amid hopes that progress toward ending the
U.S.-China trade war could help to revive economic growth and
lift fuel consumption. Global benchmark Brent crude LCOc1 was up around 2% at
$60.29 per barrel.
Gold, which had found its appeal tarnished by rising risk
appetite, recovered some ground, with spot gold XAU= trading
up 0.1% at $1,495.63 per ounce. GOL/
(Editing by Jacqueline Wong & Simon Cameron-Moore)