GLOBAL MARKETS-Asian shares tick up, eyes on China-U.S. trade relations

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

SYDNEY, May 25 (Reuters) - Asian shares started cautiously
on Monday as central bank largesse globally boosted sentiment
but rising trade tensions between the world's two biggest
economies dulled risk appetite.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.1% with South Korea .KS11 , Australia
.AXJO and New Zealand .NZ50 all starting higher.
Japan's Nikkei .N225 jumped 1.5% after the Nikkei
newspaper reported the country was considering a fresh stimulus
package worth over $929 billion that will consist mostly of
financial aid programmes for companies hit by the coronavirus
pandemic. Analysts expect trading to be subdued with U.S. and UK
markets shut for public holidays.
"Nevertheless, focus is likely to be on China's National
People's Congress, as discussions of political and economic
policies continue," ANZ analysts wrote in a note.
"Geopolitics will gain attention as U.S.-China relations
continue to represent a downside risk for markets," ANZ added.
On Friday, China proposed imposing national security laws on
Hong Kong as Beijing unveiled details of the legislation that
critics see as a turning point for the former British colony.
The proposal drew the ire of Hong Kong residents who defied
social distancing rules and protested on streets while the
United States warned Beijing's move could lead to U.S.
sanctions. The U.S. Commerce Department said late on Friday it was
adding 33 Chinese companies and other institutions to a
blacklist for human rights violations and to address U.S.
national security concerns. Sino-U.S. ties have nosedived since the outbreak of the new
coronavirus, with the administrations of President Donald Trump
and President Xi Jinping trading barbs over the pandemic,
including accusations of cover-ups and lack of transparency.
The two superpowers have also clashed over Hong Kong, human
rights, trade and U.S. support for Chinese-claimed Taiwan.
At the same time, analysts say extensive central bank
stimulus to help blunt the economic shock from the COVID-19
pandemic continues to underpin sentiment and buoy equity
markets.
Japan, last week, unveiled a lending programme to channel
nearly $280 billion to small businesses hit by the coronavirus.
India slashed rates for a second time this year and the European
Central Bank, in the minutes from its last meeting, said it was
ready to expand emergency bond purchases as early as June.
Later in the day, investor attention will shift to Germany,
where the May IFO survey is expected to show some improvement
off a record low base.
Action in currencies was a tad muted.
The dollar was up 0.1% on the Japanese yen JPY= at 107.73.
The euro EUR= held near a one-week trough at $1.0903. Sterling
added 0.1% to $1.2182 while the Australian dollar AUD=D3
gained 0.1% to $0.6543 after losses on Thursday and Friday.
Rising trade tensions hit oil prices with U.S. crude CLc1
falling 20 cents, or 0.6%, to $33.05 a barrel. Brent LCOc1 was
off 31 cents, or 0.9%, at 34.82.
Spot gold was off a bit at $1,730.5 an ounce. XAU=

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(Editing by Sam Holmes)