* MSCI Asia ex-Japan +1.2%; Nikkei +1%
* Oil rises on OPEC head comments, trade deal hopes
* 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 rose 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 was flat after earlier jumping on optimism over a
potential Brexit deal.
Investors' renewed appetite for riskier assets continued to
weigh on the safe-haven yen JPY= and U.S. Treasury prices,
while oil stayed firm on comments about possible supply cuts
from the head of OPEC.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 1.2%, following on from gains on Wall
Street. S&P e-mini futures ESc1 added more than 0.3%.
Australian shares .AXJO climbed 0.8%, while Japan's Nikkei
stock index .N225 gained 1%. Chinese blue-chips .CSI300
added 0.5%.
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 $1.1015. The
pound was slightly lower, fetching $1.2436.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was down at 98.655 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 1.6733% compared
with a U.S. close of 1.656% on Thursday. Yields rose across the
curve, with two-year notes US2YT=RR yielding 1.5464% compared
with a U.S. close of 1.53%.
In commodity markets, oil prices remained higher 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.
U.S. crude CLc1 was up 0.52% to $53.83 a barrel and global
benchmark Brent crude LCOc1 was up 0.49% at $59.39 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 $1,495.36 per ounce. GOL/
(Editing by Jacqueline Wong & Simon Cameron-Moore)