GLOBAL MARKETS-Asian stocks edge higher as investors await Fed statement

* MSCI Asia ex-Japan +0.4%
* Nikkei inches higher as Suga voted PM
* European share futures point to lower open
* Yen hits two-week high, dollar treads water

By Andrew Galbraith
SHANGHAI, Sept 16 (Reuters) - Most Asian shares rose on
Wednesday, extending a rally driven by upbeat Chinese and U.S.
economic data, but investors showed little appetite for big bets
as they awaited the Federal Reserve's view on the economy at its
policy meeting.
European bourses were set for a cautious start, with
pan-region Euro Stoxx 50 futures STXEc1 down 0.15%, German DAX
futures FDXc1 0.06% lower and FTSE futures FFIc1 down 0.64%
in early trade.
Following robust industrial output and retail sales data
from China and higher U.S. factory production investors are
focusing on the Fed's policy statement due Wednesday, the first
since Chair Jerome Powell announced an increased tolerance for
higher inflation. "The risk is if we see no new developments since his Jackson
Hole shoutout, this could have near-term pressure on yields
ticking up, gold and precious metals complex lower, dollar
higher and general risk-off in U.S. equities," said Kay
Van-Petersen, global macro strategist at Saxo Capital Markets.
"If we do get a surprise on the accommodative side - we've
gotten this a few times from smooth Jay (Powell) - then we could
get the inverse of all that, including the next big structural
break higher in gold."
The Fed is due to make its statement at 1800 GMT Wednesday,
followed by a news conference from Powell.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was 0.4% higher. Australian shares .AXJO
gained 0.97% and Taiwan's tech-heavy board .TWII added 1.02%.
However, Chinese blue-chips .CSI300 pulled back 0.62% as
investors booked profits and as healthcare firms dragged on
concerns over vaccine safety. Japan's Nikkei .N225 added 0.09% as Yoshihide Suga was
voted in as the country's first new prime minister in nearly
eight years, and readied a "continuity cabinet". The Fed meeting comes as U.S. lawmakers remain at an impasse
over a new stimulus package amid lingering concerns about the
recovery of the world's largest economy from the coronavirus
pandemic.
"There is some expectation that with the U.S. Congress
unwilling/unable to agree to a new fiscal package, monetary
policy may need to step in to fill the void," NAB analyst Tapas
Strickland said in a note. "Accordingly markets will be focused
on any changes to forward guidance and to any balance sheet
adjustments."
The Bank of Japan and the Bank of England announce their
respective policy decisions on Thursday.
E-mini futures for the S&P 500 EScv1 were up 0.06% on
Wednesday after U.S. stocks ended off their session highs, with
the Dow industrials closing little changed.
The S&P 500 .SPX gained 0.5% while the tech-heavy Nasdaq
Composite .IXIC rose 1.2%. U.S. retail sales figures from August will also be in focus
on Wednesday.
Separately, the World Trade Organization found on Tuesday
that the United States had breached global trading rules by
imposing multi-billion dollar tariffs in President Donald
Trump's trade war with China, a ruling that drew anger from
Washington.
In the currency market, the yen touched a two-week high of
105.23 per dollar JPY= as traders bet on a more accommodative
Fed, and was last at 105.31.
The euro EUR= was barely lower at $1.1844, and the dollar
index =USD , which tracks the greenback against a basket of six
major rivals, softened slightly to 93.070.
The yield on benchmark 10-year Treasury notes US10YT=RR
was at 0.674%, from Tuesday's close of 0.679%.
In contrast to the muted activity elsewhere, oil prices
jumped as a hurricane disrupted U.S. offshore oil and gas
production and as U.S. stockpiles fell. Global benchmark Brent crude LCOc1 rose 1.43% to $41.11
per barrel and U.S. West Texas Intermediate crude CLc1 jumped
1.65% to $38.91 a barrel.
Spot gold XAU= gained 0.2% to $1,959.72 per ounce. GOL/