* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Shares stabilise but risks to global economy remain
* Treasury yield curve inversion gets deeper
* Policymakers being forced to support economic growth
By Stanley White
TOKYO, Aug 28 (Reuters) - Asian shares eked out cautious
gains on Wednesday, as higher Wall Street futures provided some
relief after an overnight U.S. selloff, though deeper worries
about the global economy and trade have kept a lid on sentiment.
Japan's Nikkei .N225 rose 0.15%, Australia's shares
climbed 0.13% while Korea's KOSPI .KS11 was up 0.4%. MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.06%, dragged lower by Chinese markets.
Oil prices rose in Asia for a second day of gains after an
industry report showed U.S. stockpiles fell more than expected.
Gold prices fell in a tentative sign of easing risk
aversion, but a deep inversion in the U.S. Treasury yield curve
served as a reminder that some investors are still concerned
about economic growth.
A trade dispute between the United States and China is now
in its second year and is placing increasing strain on the
global economy, forcing policy makers to respond with interest
rate cuts and stimulus measures to bolster growth.
"Bonds are rallying and there is limited upside for stocks
right now," said Kiyoshi Ishigane, chief fund manager at
Mitsubishi UFJ Kokusai Asset Management Co in Tokyo.
"But I don't want to give up on equities just yet. The U.S.
Federal Reserve and officials in other countries simply have to
do more to stimulate their economies, which will eventually
prevent the bottom from falling out."
U.S. stock futures ESc1 were 0.27% higher, which helped
ease investors' nerves in Asian trading after the S&P 500 .SPX
fell 0.33% on Tuesday.
U.S. crude CLc1 rose 1.02% to $55.49 a barrel, supported
by a drawdown in U.S. crude inventories.
Spot gold XAU= fell 0.5% to $1,538.00 per ounce, pulling
back from a six-year high. GOL/
South Korea stocks .KS11 rose 0.5%, on course for their
biggest daily increase in a week as investors hunted for
bargains after shares were sold due to worries about weighting
changes in the MSCI index.
China unveiled measures late on Tuesday to help boost
consumption, including the possible removal of restrictions on
auto purchases, as growth in the world's second-biggest economy
falters Chinese shares .CSI300 initially opened higher on
Wednesday but then reversed course to trade 0.56% lower, showing
there are still some concerns about economic growth.
Shares in Hong Kong .HSI swung between gains and losses as
increasingly violent protests against China's "one country, two
system" rule of the former British colony hurt sentiment.
Investors are also focused on Sept. 1, when the first stage
of U.S. tariffs on $300 billion worth of Chinese goods is
scheduled to go into effect. In response, China has unveiled
tariffs on U.S. products set to go into effect the same day.
A bond yield curve inverts when long-term yields trade below
short-term yields and is commonly considered a signal of an
impending economic recession.
The yield on benchmark 10-year Treasuries US10YT=RR stood
at 1.4761%, compared with the two-year yield US2YT=RR of
1.5159%. The yield curve inversion is the deepest since May
2007, when the U.S. subprime financial crisis started to unfold.
Yields on 30-year Treasuries stood at 1.9441%, below 3-month
T-bill yields of 1.9951%, which some traders say is an even more
bearish signal.
The dollar was little changed at 105.67 yen JPY=EBS after
falling 0.3% on Tuesday.
(Editing by Sam Holmes)