* Gold hits record high, dollar falls broadly
* Asia tech shares gain as Intel delays new chips
* U.S.-China tensions keep investors on edge
* Earnings, U.S. stimulus talks in focus
* European shares seen up 0.2%
By Hideyuki Sano
TOKYO, July 27 (Reuters) - Gold soared to an all-time high
on Monday as worsening diplomatic ties between China and the
United States rattled investors and fired up demand for the
safe-haven metal, while stock market sentiment was mixed ahead
of corporate earnings.
European stocks are expected to claw back some of their
sharp losses on Friday, with Euro Stoxx 50 futures STXEc1 up
0.2%.
In Asia, stocks were mixed as a 10% rally in Taiwanese chip
heavyweight TSMC 2330.TW cheered some other tech shares across
the region, which helped prop up the broader market with MSCI's
ex-Japan Asia-Pacific index .MIAPJ0000PUS rising 0.4%.
TSMC's surge came after U.S. rival Intel INTC.O signalled
it may give up making its own components after falling far
behind schedule developing its newest technology. "Chipmaking machine makers may see reduced demand from Intel
for now but as the jump in TSMC shows, markets are not
pessimistic about the semiconductor industry," said Yasuo
Imanaka, chief analyst at Rakuten Securities.
Elsewhere, there was less enthusiasm with mainland Chinese
shares giving up most of their early gains, with CSI300 index
.CSI300 last up 0.1%, after steep losses on Friday.
S&P500 futures ESv1 were last up 0.4% in choppy trade
while Japan's Nikkei .N225 fell 0.5%.
Global shares had lost steam late last week after Washington
ordered China's consulate in Houston to close, prompting Beijing
to react in kind by closing the U.S. consulate in Chengdu.
U.S. Secretary of State Mike Pompeo took fresh aim at China,
saying Washington and its allies must use "more creative and
assertive ways" to press the Chinese Communist Party to change
its ways. "U.S. President (Donald) Trump used to say China's President
Xi Jinping is a great leader. But now Pompeo's wording is
becoming so aggressive that markets are starting to worry about
further escalation," said Norihiro Fujito, chief investment
strategist at Mitsubishi UFJ Morgan Stanley Securities.
Gold rose 1.6% to a record high of $1,943 per ounce XAU= ,
surpassing a peak touched in September 2011, as Sino-U.S.
tensions boosted the allure of safe haven assets, especially
those not tied to any specific country.
The yellow metal is also helped by aggressive monetary
easing around the world since the pandemic plunged the global
economy into a recession.
MORE STIMULUS
Hopes for a quick U.S. economic recovery are fading as
coronavirus infections showed few signs of slowing. That means the economy could capitulate without fresh
support from the government, with some of the earlier steps such
as enhanced jobless benefits due to expire this month.
Investors hope U.S. Congress will agree on a deal before its
summer recess but there are some sticking points including the
size of stimulus and enhanced unemployment benefits.
U.S. Treasury Secretary Steve Mnuchin said the package will
contain extended unemployment benefits with 70% "wage
replacement". Democrats, who control the House of Representatives, want
enhanced benefits of $600 per week to be extended and look to
much bigger stimulus compared with the Republicans' $1 trillion
plan.
Concerns about the U.S. economic outlook have also started
to weigh on the dollar.
The dollar index USD= dropped 0.4% to its lowest level in
nearly two years.
The euro gained 0.4% to $1.1697 EUR= , hitting a 22-month
high, after a European agreement on a recovery fund last week
supported sentiment toward the common currency.
Against the yen, the dollar slipped 0.5% to 105.605 yen
JPY= , a four-month low while the British pound hit a 4
1/2-month high of $1.2832 GBP= .
Oil prices were capped on worries about the worsening
Sino-U.S. relations.
Brent futures LCOv1 slipped 0.05% to $43.32 per barrel
while U.S. crude futures CLc1 were flat at $41.29.
(Editing by Sam Holmes)