* Trade deal sends stocks higher, but details awaited
* Asia ex-Japan index at highest since April
* Nikkei hits highest since Oct. 2018
* Pound slips as hard Brexit fears re-emerge
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook
SYDNEY, Dec 17 (Reuters) - Asian shares rose to their
highest in more than a year on Tuesday, as trade deal optimism
and Wall Street's run to all-time highs supported sentiment,
while familiar fears of a hard Brexit knocked the pound.
The mood carried MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS up 0.6% to its highest
since July 2018. Japan's Nikkei .N225 hit its firmest in more
than year, Hong Kong's Hang Seng .HSI rose almost a percent.
Korea's Kospi .KS11 stood at its highest since May and
Shanghai blue chips .CSI300 rose 0.6%, while Australia's
S&P/ASX 200 .AXJO eked a tiny extension to Monday's big gains.
Bond markets, currencies and commodities were more
circumspect, and futures trade pointed to softness in Europe and
a flat open the United States after a bumper Monday.
"As long as volatility remains low, momentum is probably
continuing, despite the amazing year to date gains," said Kay
Van-Petersen, global macro strategist at Saxo Capital Markets in
Singapore.
"The risk is that nobody thinks that there's anything left
for the year, they're all thinking 2020."
The preliminary deal between Washington and Beijing will
double U.S. exports to China, White House adviser Larry Kudlow
told Fox News on Monday. The United States will also reduce some
tariffs on Chinese goods under the agreement. It is not yet signed, and the Chinese side have been more
circumspect in their praise, but U.S. Trade Representative
Robert Lighthizer said over the weekend it is "totally done".
The three major U.S. stock indexes rose modestly, but posted
record closing highs. So did the pan-European STOXX 600 index
.STOXX . .N .EU
The Dow Jones Industrial Average .DJI rose 0.4%, the S&P
500 .SPX added 0.7% and the Nasdaq .IXIC almost one
percentage point. For the year to date, the Nasdaq has increased
its value by a third, while the other indexes are up by more
than 20%.
In Britain, the FTSE 100 .FTSE had its biggest daily gain
in almost a year. But after the closing bell some familiar fears
returned. ITV reported Prime Minister Boris Johnson would use his huge
majority to reinstate a hard deadline for quitting the European
Union at the end of next year, again raising the spectre of a
chaotic "hard" Brexit. Sterling GBP= fell 0.6%, before recovering slightly.
WHAT'S ACTUALLY IN IT?
Elsewhere currency markets were more pensive in the absence
of many of the fine details of the trade deal. The U.S dollar
recouped some of Monday's losses, though moves were modest.
"Well, yeah, they've agreed a 'phase one' deal, but what's
actually in it?" said Westpac analyst Imre Speizer.
"Equity markets just want to rally, so they'll pick on
anything that seems remotely positive, but the other markets are
maybe a little more thoughtful about exactly what's going on."
Several Chinese officials told Reuters the wording of the
agreement remained a delicate issue and care was needed to
ensure expressions used in text did not re-escalate tensions.
Still, trade optimism kept the Chinese yuan on the strong
side of 7 per dollar CNH= .
The Australian dollar AUD=D3 drifted lower as minutes of
the central bank's December policy meeting showed it was open to
monetary easing in February if the outlook deteriorated.
Brent crude LCOc1 held steady at $65.32 per barrel, after
climbing on Monday. Spot gold XAU= was flat at $1,475.26 per
ounce.
(Editing by Lincoln Feast and Jacqueline Wong)