* MSCI Asia ex-Japan -0.3%
* European shares seen falling at the open
* China GDP grows 6.0% in third quarter, near three-decade
* Sterling gives back gains after Brexit deal rally
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, Oct 18 (Reuters) - Asian stocks stumbled on
Friday, erasing earlier gains after China posted its weakest
growth in nearly three decades, countering a global lift in
sentiment on the UK and European Union striking a long-awaited
Brexit deal.
But the Brexit boost that helped markets on Thursday looks
to have faded, with shares in Europe expected to open lower.
Pan-region Euro Stoxx 50 futures STXEc1 were down 0.42% at
3,573, German DAX futures FDXc1 fell 0.46% to 12,621.5 and
FTSE futures FFIc1 were 0.4% lower at 7,145.5.
China's economy grew 6.0% in the third quarter, less than
expected, and the weakest pace in at least 27-1/2 years, as the
Sino-U.S. trade war hit demand at home and abroad. While the downbeat data raises the prospect that Chinese
policymakers could prepare more measures to boost growth,
analysts and market players said Beijing has relatively little
room for significant easing.
"How much traction is monetary policy going to get? If there
is any short-term move (higher) here in Asia it will genuinely
be only short-term players because we're not far from printing
5% in China GDP, and that's not going to be good for risk
assets," said Greg McKenna, strategist at McKenna Macro.
"It doesn't matter how excited you get about stimulus, it is
not going to be good for risk assets."
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.3% by around 0612 GMT, erasing
earlier small gains. Australian shares .AXJO dropped 0.52% and
Chinese blue-chips .CSI300 were off 1.53%. Japan's Nikkei
.N225 ended 0.18% higher.
Sterling, which had enjoyed its biggest rising streak since
October 1985 and hit a five-month high on the back of the Brexit
deal, gave up ground on Friday morning amid doubts that the
agreement would receive parliamentary approval. The pound eased
0.29% to buy $1.2850. GBP=
"Whatever was agreed last night with the EU still has to go
through the British parliament...the uncertainty surrounding
that still hasn't changed one iota," said James McGlew,
executive director of corporate stockbroking at Argonaut in
Perth, Australia.
Equity markets had enjoyed a bounce on Thursday from the
initial Brexit deal news, with the S&P 500 .SPX briefly
topping 3,000 points for the first time in more than three
weeks.
Helping to alleviate immediate trade war worries, China said
on Thursday that it hoped to reach a phased agreement in its
trade dispute with the United States as soon as possible.
Investors were also encouraged by upbeat earnings from
Netflix NFLX.O and Morgan Stanley MS.N , but poor results
from International Business Machines Corp IBM.N and weak U.S.
economic data weighed.
Housing starts, industrial production and mid-Atlantic
factory output all fell short of economist expectations.
The Dow Jones Industrial Average .DJI gained 0.09% to
27,025.88, the S&P 500 .SPX finished up 0.28% at 2,997.97 and
the Nasdaq Composite .IXIC rose 0.4% to 8,156.85.
On Friday, S&P 500 e-mini stock futures ESc1 , were down
0.23% at 2,991.25.
Reflecting the cautious mood, the yield on benchmark 10-year
Treasury notes US10YT=RR fell to 1.7396% compared with a U.S.
close of 1.755% on Thursday.
In the currency market, the safe-haven yen strengthened,
with the dollar falling 0.13% to 108.51, while the euro EUR=
was flat on the day at $1.1123.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was barely lower at 97.599.
Oil fell, with Brent crude LCOc1 easing 0.52% to $59.60
and U.S. crude CLc1 dropping 0.19% to $53.83.
Spot gold XAU= rose to $1,492.25 per ounce. GOL/
GBP loses Brexit deal boost https://tmsnrt.rs/2MtqzNH
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(Editing by Sam Holmes and Jacqueline Wong)