GLOBAL MARKETS-Stocks firm, shrug off tech rout scare and Sino-U.S. tensions

* Ex-Japan Asia up 0.4%, Nikkei rises 0.8%
* S&P500 futures up 0.7%, Nasdaq futures flat
* U.S. debt yields off lows
* European share futures up 0.3%
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano and Julie Zhu
TOKYO/HONG KONG, Sept 8 (Reuters) - Asian shares gained on
Tuesday following a small bounce in European markets and
shrugging off concerns over the latest U.S.-China tensions, as
investors looked to whether high-flying U.S. tech shares could
recover from their recent rout.
European markets appeared set for a higher open with both
Euro Stoxx 50 futures STXEc1 and FTSE futures FFIc1 up 0.3%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.4%. Japan's Nikkei .N225 added 0.8%,
even as revised data confirmed the nation had slumped into its
worst postwar contraction, with business spending taking a
bigger hit from the coronavirus pandemic than initially
estimated. Shares in mainland China and Hong Kong managed to erase
early losses made after President Donald Trump on Monday ramped
up his anti-Chinese rhetoric by again raising the idea of
de-coupling the U.S. and Chinese economies. "While it's impossible and unrealistic to decouple for the
two countries, his remarks would weigh on investor sentiment and
increase market risks," said Hong Hao, head of research at BoCom
International.
China's blue-chip index .CSI300 and Hong Kong's Hang Seng
.HSI gained 0.7% and 0.5%, respectively. The newly launched
Hang Seng tech index .HSTECH fell 1.1%.
Trump's remarks followed the possible U.S. blacklisting of
China's largest chip maker, Semiconductor Manufacturing
International Corp (SMIC), which has hit many Chinese tech firms
listed onshore and offshore. "That would remain a big overhang on several Chinese tech
companies," Hong said. "The market cannot digest the news in
just one to two days."
U.S. financial markets were shut on Monday for a public
holiday while globally traded U.S. S&P500 futures EScv1 erased
their Monday losses to trade 0.5% higher. Tech shares remained
more fragile, however, with Nasdaq futures NQcv1 trading
around flat after having lost more than 6% late last week.
While many market players were unable to pinpoint a single
trigger for the Nasdaq's sudden plunge, valuations have been
stretched given its sharp 75% gain from a bottom hit in March.
"Those tech shares were becoming expensive so I would see
their latest fall as a healthy correction," said Masahiro
Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management.
Risk assets also face headwinds from creeping doubts that
U.S. policymakers may not be willing to compile massive stimulus
as some traders had hoped for.
"The headline figures from Friday's U.S. jobs data were
pretty good, so that could lead to speculation policymakers may
no longer be eager to dole out trillions of dollars to support
the economy," said Masahiko Loo, portfolio manager at
AllianceBernstein.
The 10-year U.S. Treasuries yield stood at 0.710%
US10YT=RR , off a five-month low of 0.504% touched in August.
In currencies, sterling dropped after the European Union
told Britain on Monday that there would be no trade deal if it
tried to tinker with the Brexit divorce treaty. The warning came after British Prime Minister Boris
Johnson's government was reported to be planning new legislation
to override parts of the Brexit Withdrawal Agreement it signed
in January.
The pound last fetched $1.3152, having lost 0.80% on Monday
to $1.3167 GBP=D4 , near its lowest levels in two weeks.
Other currencies barely moved with rises in U.S. yields
helping to stem the dollar's recent weakness.
The euro eased slightly overnight to $1.1818 EUR= and was
last trading at $1.1816, while the dollar was little moved at
106.21 yen JPY= .
Gold prices eased on Tuesday, although rising doubts over
the economic recovery from the COVID-19 slump limited losses.
Spot gold XAU= was up 0.2% at $1,933.43 per ounce.
Oil prices dropped to five-week lows after Saudi Arabia made
its deepest monthly price cuts to supply for Asia in five months
and as uncertainty over Chinese demand clouds the market's
recovery. U.S. crude futures CLc1 fell 1.8% to $39.06 per barrel.

(Editing by Christopher Cushing, Shri Navaratnam and Jacqueline
Wong)