* Markets on edge, await signs of breakthrough on trade
* Chinese stocks rise; Japan, South Korea fall
* Currencies also becalmed, awaiting concrete news
By Tom Westbrook
SINGAPORE, Nov 19 (Reuters) - Asian share markets were mixed
in subdued trade on Tuesday, pending clearer news on whether
U.S.-China negotiations will reach a preliminary accord to end
the prolonged trade war between the world's two largest
economies.
"There are some lingering doubts over whether a phase one
deal can be struck," Vishnu Varathan, head of economics and
strategy at Mizuho Bank's Asia Treasury Department in Singapore,
said. "The suspicion is that there's a lot more wrinkles to iron
out than initially thought."
Meantime, hopes that Beijing will deliver some economic
stimulus provided a boost to sentiment. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3%, with Shanghai blue chips .CSI300
gaining 0.6% and Hong Kong's Hang Seng .HSI up 1%.
Australia's S&P/ASX 200 .AXJO also rose, to close 0.7%
higher. However Japan's Nikkei .N225 shed 0.4% and South
Korea's Kospi 200 dropped 0.5%, while volumes were light across
the board.
E-Mini futures for the S&P 500 ESc1 were 0.1% higher and
European futures also pointed to a higher open, with EUROSTOXX
50 futures STXEc1 trading 0.3% higher.
Overnight, CNBC had reported the mood in Beijing was
pessimistic about prospects of sealing an trade agreement with
the United States.
Obversely, a new extension granted by Washington to let U.S.
companies keep doing business with Chinese telecoms giant Huawei
suggested a possible olive branch. Still, neither morsel shed much light on progress in
negotiations, and the listless trading suggested optimism over
prospects for a deal was beginning to flag.
"The longer we go on, the more concerns will arise. The
reality is the clock is ticking," said Michael McCarthy, chief
market strategist at brokerage CMC Markets in Sydney.
The next deadline in the dispute is Dec. 15, when another
round of U.S. tariffs on Chinese good is scheduled to take
effect.
Wall Street's main indexes had traded mostly flat on Monday,
looking for direction on trade, though they ended the day
inching to record closing highs.
The Dow Jones Industrial Average .DJI rose 0.1%. The S&P
500 .SPX gained 0.05%, and the Nasdaq Composite . IXIC added
0.1%.
The yield on benchmark 10-year Treasury notes US10YT=RR
drifted lower during Asian trading hours, but at 1.8084% it was
above the U.S. close of 1.808% on Monday.
WAITING GAME
Currency markets were similarly range-bound. The safe-haven
Japanese yen JPY= ticked higher to 108.60 yen per dollar.
The Australian dollar AUD= nudged 0.2% lower to $0.6797
after the central bank said it had seen a case for cutting rates
this month.
The British pound GBP= settled at $1.2954 after hitting a
one-month high overnight as four opinion polls showed Prime
Minister Boris Johnson's Conservative Party on course for
victory at the Dec. 12 election.
"Overall, risk-related plays will continue to be whipsawed
by alternating headlines, but in the short term, risk-off plays
may still have room to run as uncertainties persist," said
Terence Wu, a strategist at OCBC bank in Singapore.
Spot gold XAU= , which has been closely tracking the
fortunes of the Sino-U.S. trade dispute, was flat at $1,471.41
per ounce.
U.S. crude CLc1 dropped 0.42% to $56.81 a barrel. Brent
crude LCOc1 fell to $62.26 per barrel.
GRAPHIC: Asia stock markets https://tmsnrt.rs/2zpUAr4
GRAPHIC: Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
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