* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Investors hope for resolution to U.S.-China trade dispute
* Brexit vote boosts global shares
* HK tension eases for now, but concerns remain
* Oil pulls back in Asia after strong rally overnight
By Stanley White
TOKYO, Sept 5 (Reuters) - Asian shares extended gains on
Thursday and U.S. stock futures jumped after China said it will
hold trade talks with the United States in early October,
raising hopes they can de-escalate their trade war before it
inflicts further damage on the global economy.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.8%, while the Shanghai composite index
.SSEC surged 1.8%. Japan's Nikkei .N225 added 2.4%.
U.S. stock futures ESc1 reversed early losses and rose 1%.
The Chinese yuan jumped versus the dollar in offshore trade,
while safe-have assets such as gold and the yen fell.
China's confirmation of trade talks added to upbeat
geopolitical news overnight. A parliamentary vote in Britain put
the brakes on the nation's no-deal exit from the European Union,
Hong Kong withdrew a contentious extradition bill that sparked
recent protests and political turmoil in Italy appeared to be
easing.
China's Commerce Ministry said its trade team will consult
with their U.S. counterparts in mid-September in preparation for
negotiations in early October, hinting at progress in reducing
trade friction. Both sides had agreed to take actual actions to create
favourable conditions, the ministry added, without giving more
details.
"Since yesterday, there has been limited downside in markets
because of what happened in Hong Kong, but now the U.S.-China
talks are the story," said Masayuki Kichikawa, chief macro
strategist at Sumitomo Mitsui Asset Management Co in Tokyo.
"It's the same about Brexit, which means less downside
risk."
Hong Kong .HSI shares erased early losses to rise 0.5%.
They had jumped in afternoon trade on Wednesday after leader
Carrie Lam said she was withdrawing an extradition bill that had
triggered months of often violent protests in the Asian
financial hub. In currency markets, sterling held onto gains against the
dollar in Asia after rallying the most in more than five months
on Wednesday after lawmakers voted to prevent Prime Minister
Boris Johnson taking Britain out of the European Union without a
deal on Oct. 31. But, more than three years since the United Kingdom voted
narrowly to leave the EU, the outcome of Brexit is still
unclear, with possible outcomes ranging from a crash out of the
EU to abandoning the whole endeavour.
Against the offshore yuan CNH=D3 , the dollar fell 0.2% to
7.1324 yuan.
U.S. Treasury yields extended gains in Asia and the yield
curve steepened, both signs that investors were willing to take
on riskier assets.
The 10-year yield US10YT=RR rose to 1.4758%, while
two-year yields US2YT=RR rose to 1.4519%.
The spread between two- and 10-year Treasury yields
US2US10=TWEB , the most commonly used measure of the yield
curve, rose to its highest since Aug. 21 on Wednesday but
narrowed slightly in Asian trade.
The curve inverted on Aug. 14 for the first time since 2007
when long-term yields traded below short-term yields, which is a
widely accepted indicator of coming recession.
U.S. West Texas Intermediate crude CLc1 also reversed
losses to trade up 0.2%.
(Editing by Sam Holmes & Kim Coghill)