GLOBAL MARKETS-Global stocks gain as U.S. eases Huawei restrictions

* European stocks with Asian exposure, chipmakers gain
* Autos, suppliers up as much as 1.1%.
* In Germany, Daimler up on cost-cutting report
* Sterling below $1.27 for first time since mid-Jan

By Tom Arnold
LONDON, May 21 (Reuters) - Stocks markets gained on Tuesday,
with chipmakers and stocks exposed to Asia among the best
performers, after Washington temporarily eased trade
restrictions imposed last week on China's Huawei.
In Europe, the broader Euro STOXX 600 .STOXX edged up
0.3%, with Germany's DAX .GDAXI rising 0.6%, while France's
CAC 40 .FCHI climbed 0.2%.
At the close, China's Shanghai Composite index .SSEC was
up 1.23%, while the blue-chip CSI300 index .CSI300 ended 1.35%
higher.
U.S. President Donald Trump's government added Huawei to a
trade blacklist last week, escalating trade tensions between the
world's two biggest economies.
Washington then allowed Huawei Technologies Co Ltd to
purchase American-made goods to maintain existing networks and
provide software updates to existing Huawei handsets until Aug.
19.
"The Huawei extension is in some sense providing a relief
rally as it eases the worst fears of market participants that we
are drifting towards a fully-fledged trade war," said Aberdeen
Standard's head of global strategy, Andrew Milligan.
Chipmakers Infineon IFXGn.DE and STMicro STM.MI were up
1.4 to 3.5%, and the tech sector .SX8P rising more than 1%
after losing almost 3% on Monday.
The autos and suppliers sector .SXAP was another top
gainer, up as much as 1.1%.
In London, heavyweights HSBC HSBA.L , Prudential PRU.L
and Standard Chartered STAN.L boosted the blue-chip index as
markets on hopes if an easing in the trade tensions.
In Asia, gains in heavyweight Samsung Electronics
005930.KS helped South Korea's KOSPI stock index .KS11 close
up 0.3%.
The MSCI index of world shares .MIWD00000PUS , which tracks
shares in 47 countries, was little changed at 0.01%.
"Equity markets remain hostage to developments in the
ongoing US-China trade battle," said Rupert Thompson, head of
research at Kingswood.
"We still believe some kind of deal will eventually be
reached - most likely at a Xi/Trump meeting at the G20 Summit in
late June."
In Germany, Daimler DAIGn.DE got an additional boost after
German newspaper Handelsblatt reported the company was looking
to cut administration costs by 20%. Italy's biggest phone group Telecom Italia TLIT.MI led
gainers on the STOXX 600 after posting first-quarter earnings
in-line with expectations and confirming its guidance for the
next three years. SLIPS
In currency markets, the British pound fell below $1.27 for
the first time since mid-January, hit by dollar strength and
expectations that Prime Minister Theresa May will fail to
persuade cabinet colleagues to back an amended version of her
Brexit withdrawal deal.
The pound slipped 0.2% to $1.2688 while against the euro it
was down 0.14% to a new four-month low of 87.88 pence GBP=D3 ,
EURGBP=D3 . The US dollar was supported by some safe haven inflows,
while Australia's top policymaker Philip Lowe said on Tuesday
the central bank will consider the case for lower interest rates
at its June policy meeting, pushing the Aussie dollar AUD=D3
lower half a percent to $0.6873. Oil prices edged higher on U.S.-Iran tensions and amid
expectations that producer club OPEC will continue to withhold
supply this year.
Brent crude futures LCOc1 , the international benchmark for
oil prices, were at $72.18 per barrel at 0651 GMT, up 21 cents,
or 0.3 percent, from their last close.