(Corrects to fixes chart link, no changes to text)
* MSCI Asia ex-Japan flat, in narrow range all day
* European shares seen following Wall Street higher
* China June trade, lending data due Friday, Q2 GDP due
Monday
* Trump says China not living up to promises
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, July 12 (Reuters) - Asian shares shuttled between
small losses and gains on Friday as investors awaited China
trade, lending and growth data, and as worries over Sino-U.S.
trade tensions deflated optimism rooted in expectations of a
Federal Reserve rate cut this month.
But while an anticipated Fed cut did little to spur gains in
Asian markets, European equities were expected to open higher.
Pan-region Euro Stoxx 50 futures STXEc1 were up 0.29% at
3,500, German DAX futures FDXc1 were up 0.36% at 12,367 and
FTSE futures FFIc1 were up 0.34% at 7,475. Financial
spreadbetters expect Paris' CAC .FCHI to open 0.38% higher.
Later on Friday, China will release June trade data, with
analysts expecting exports to have fallen as weakening global
demand and a sharp hike in U.S. tariffs took a heavier toll on
the world's largest trading nation. China is also due to release lending data on Friday, while
second-quarter GDP figures are scheduled for Monday. The world's
second-largest economy is expected to have slowed to its weakest
pace in at least 27 years, raising hopes for more stimulus to
fend off a sharper slowdown. "You've got key data coming out, and I don't see why anyone
would want to take a position until you've got that data," said
Michael Every, head of Asia-Pacific financial markets
research at Rabobank in Hong Kong.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS , which moved in a narrow range through the day,
was flat in the afternoon. Chinese shares rose, with the CSI300
.CSI300 adding 0.85%.
Australian shares .AXJO dipped 0.3% and Japan's Nikkei
stock index .N225 started the day with small losses, but ended
0.2% ahead.
Underscoring the economic impact of global trade tensions,
Singapore's economy grew at its slowest pace in a decade in the
second quarter as electronics manufacturing output declined for
a sixth consecutive month in May, and as exports saw their
biggest decline in more than three years. Amid the global slowdown, U.S. Federal Reserve Chairman
Jerome Powell indicated on Thursday that a rate cut is likely at
the Fed's next meeting. Bets for such a cut remained strong despite a rise in U.S.
consumer inflation in June, and helped to lift the S&P 500 index
on Thursday by 0.23% to end at a record closing high of 2,999.91
points.
While the Nasdaq Composite .IXIC fell 0.08%, the Dow Jones
Industrial Average .DJI also hit a record high close of
27,088.08 points, rising 0.85% on the day.
S&P 500 e-mini futures ESc1 were last up 0.23% at 3,011.
But a tweet by U.S. President Donald Trump on Thursday in
which he said that China was not living up to promises it made
on buying agricultural products from American farmers threatened
to revive worries over trade. "Markets have enjoyed a bit of a calm spot in the U.S.-China
trade war saga since the announcement of a truce and restarting
of trade talks at the G20 meeting. Unfortunately, headlines are
once again beginning to emerge," ANZ analysts wrote in a morning
note.
"While this wasn't a big market mover, it does serve as a
reminder that things could flare up again," they said.
WEAK TREASURY AUCTION
U.S. Treasury yields had jumped on Thursday after demand was
weak for a $16 billion 30-year bond auction and after the U.S.
Labor Department said its consumer price index excluding food
and energy rose 0.3% in June, the biggest increase since January
2018. The poorly received auction had pushed the 30-year yield as
high as 2.672% on Thursday, according to Refinitiv data.
Yields continued to rise on Friday. Benchmark 10-year
Treasury notes US10YT=RR last yielded 2.1359%, up from a U.S.
close of 2.12% on Thursday, while the 30-year yield touched
2.6511%, up from a close of 2.639%.
"The CPI report will have no material impact on Fed guidance
nor have a significant influence on the great Fed debate
around 25 or 50," said Stephen Innes, managing partner at
Vanguard Markets Pte, referring to expectations of the size of a
July rate cut.
"After all, the FOMC is unquestionably willing to let
inflation run hotter after spending the better part of a decade
trying to ignite those flames," he said.
The dollar fell 0.15% against the yen to 108.32 JPY= ,
while the euro EUR= gained 0.19% to buy $1.1273.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was down 0.15% at 96.900.
Oil prices picked up as U.S. oil producers in the Gulf of
Mexico cut by output by more than half, in the face of a
tropical storm and as tensions in the Middle East remained.
O/R
Global benchmark Brent crude LCOc1 gained 0.68% to $66.97
per barrel. U.S. West Texas Intermediate (WTI) crude CLc1 was
up 0.61% to $60.57 a barrel.
Gold prices, dulled by the stronger-than-expected U.S.
consumer inflation data, regained their shine thanks to renewed
trade worries and rate cut expectations. Spot gold XAU= last
traded up 0.14% at $1,405.60 per ounce. GOL/
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China Q2 GDP seen slowing https://tmsnrt.rs/32rNFKD
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