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GLOBAL MARKETS-U.S. stock futures gain on better trade tone, oil climbs

Mon, 23rd Sep 2019 00:57

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* E-Mini futures for S&P 500 up 0.5%, Nikkei futures rise0.4%

* Risk-sensitive Aussie firms, dollar up on yen

* Oil gains after sell-off on Friday, gold nudges lower

By Swati Pandey

SYDNEY, Sept 23 (Reuters) - Wall Street stock futures edgedup in early trade on Monday, setting an upbeat tone for Asianmarkets on hopes of an interim Sino-U.S. tariff deal after theU.S. Trade Representative characterised their two days of talksas "productive".

Oil gained more than 1% to their highest in two sessions asMiddle East tensions remained elevated, supporting prices.

The E-mini futures for U.S. S&P 500 climbed 0.5% inwhile Chicago-traded Nikkei futures suggest Japan'sNikkei is on course to rise 0.4%.

MSCI's broadest index of Asia-Pacific shares outside Japan, up 3.4% so far this month, is likely to hold afirm tone on Monday.

The U.S. Trade Representative's office issued a briefstatement characterising the two days as "productive" and that aprincipal-level trade meeting in Washington would take place inOctober as previously planned.

China's Commerce Ministry, in a brief statement, describedthe talks as "constructive", and said they had also had a gooddiscussion on "detailed arrangements" for the high-level talksin October.

"Both sides agreed to continue to maintain communication onthe relevant issues," it added, without elaborating.

Additionally, the United States removed tariffs from morethan 400 Chinese products in response to requests from U.S.companies.

"The two nations have continued to hold constructive talks.That's helped the sentiment but the markets still remainunconvinced," said Rodrigo Catril, senior forex strategist atNational Australia Bank in Sydney.

Market sentiment was still a bit jittery as news broke onFriday that Chinese officials unexpectedly cancelled a visit toU.S. farms next week following their two days of negotiations inWashington.

That led to losses in Wall Street on Friday with the Dowclosing 0.6% lower, the S&P500 0.5% down and Nasdaqoff 0.8%.

"There has not been any progress, at least officially, interms of the more contentious issues," Catril added.

Analysts said they'd closely follow U.S.-China trade talksin coming weeks.

Later in the day, September manufacturing activity surveysare due from the United States and European Union with marketlooking for a small rebound.

In currencies, the dollar gained a tad against the safehaven Japanese yen to 107.61. The risk-sensitiveAustralian dollar was up 0.11%.

The euro was mostly flat as was the British pound.

Brent crude futures gained on Monday, rising 1.1%,or 72 cents, to $65 a barrel, while U.S. crude futuresadded 1.2%, or 71 cents, to $58.80 a barrel.

The Pentagon has ordered additional troops to be deployed inthe Gulf region to strengthen Saudi Arabia's air and missiledefences following an attack on Saudi oil facilities.

U.S. Secretary of State Mike Pompeo said on Sunday theadditional troops are for "deterrence and defence" andWashington aimed to avoid war with Iran.

But with markets calmer since the Sept. 14 attacks on SaudiArabian refineries, gold pulled back.

Spot gold was off 0.2% at $1,513.71 an ounce.

(Editing by Jacqueline Wong)

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