* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Stocks grind higher on hopes for end to trade friction
* Oil futures bounce back from overnight decline
* Investors warn there are still risks to outlook
By Stanley White
TOKYO, Sept 26 (Reuters) - Asian stocks rose on Thursday as
hopes the United States and China may soon end their year-long
trade war boosted demand for riskier assets while worries about
a U.S. presidential impeachment bid ebbed.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.13%. Japan's Nikkei .N225 rose 0.40%.
Chinese blue-chip shares .CSI300 advanced 0.20%.
The optimism over trade pushed market concerns about U.S.
political risks into the background, a day after Democrat
lawmakers said they will open an impeachment inquiry into
President Donald Trump's dealings with his Ukraine counterpart.
Lifting investor mood, Trump said a deal to end a nearly
15-month trade war with China "could happen sooner" that people
think, which would remove a huge shadow over the global economic
outlook. Oil futures rose in Asia in a sign of cautious optimism
about global economic prospects, but some investors warned that
an end to trade friction is far from certain.
"Every time there is a hint of positive about trade talks
markets rise," said William O'Loughlin, portfolio manager at
Rivkin Asset Management in Sydney.
"It feels like the markets are looking to rally. It seems
the markets haven't caught on to the fact these headlines about
trade bounce around from one day to the next."
U.S. stock futures ESc1 were down 0.03% early in Asia,
following a 0.62% increase in the S&P 500 on Wednesday as shares
of Nike Inc NKE.N jumped after it reported
better-than-expected earnings.
Trump and Japanese Prime Minister Shinzo Abe signed a
limited trade deal on Wednesday that cuts tariffs on U.S. farm
goods, Japanese machine tools and other products while further
staving off the threat of higher U.S. car duties. Despite the progress in Japan trade, Sino-U.S. talks remain
the bigger concern for global investors.
The United States and China have been locked in a year-long
dispute over Beijing's trade practices that has slowed global
growth and increased the risk of recession for some economies.
Analysts tempered their optimism over a resolution to the
trade war because Trump's public comments often send mixed
signals.
Just on Tuesday, Trump sharply criticised China in a speech
at the United Nations General Assembly, where he said he would
not accept a "bad deal".
Stocks also got a lift after data showed that sales of new
U.S. single-family homes rebounded more than expected in August.
Dallas Federal Reserve President Robert Kaplan said the odds
of a recession in the next 12 months are relatively low, another
reason for investors to shift more money into equities.
Meanwhile, political worries eased as investors largely
shrugging off the Democrats' decision to begin an impeachment
inquiry into Trump. That came even as a summary of a telephone
call showed the U.S. president asked Ukraine's president to
investigate a political rival. Casting doubts over the likelihood of an impeachment is the
majority held by Trump's Republicans in the Senate, which can be
used to quash any attempt to remove the president from office.
U.S. crude CLc1 ticked up 0.07% to $56.53 a barrel in a
sign some investors anticipate higher demand for energy and fuel
in the future due to stronger economic activity.
Treasury yields gave up some of their gains in Asia after
rising in overnight trade.
The yield on benchmark 10-year Treasury notes US10YT=RR
fell slightly to 1.7025%. The two-year yield US2YT=RR fell to
1.6615%.
(Editing by Sam Holmes and Richard Borsuk)