Asia stocks frustrated as trade doubts resurface

Asian shares napped near multi-month peaks on Thursday while bonds eked out a bounce as reports of delays in sealing a preliminary Sino-UStrade deal left investors frustrated at the lack of concrete progress.

In early European trades, the pan-region Euro Stoxx 50 futureswere up slightly while those for German DAX were flat. London's FTSE futuresrose 0.2 per cent.

MSCI's broadest index of Asia-Pacific shares outside Japandipped a slight 0.2 per cent, just off a six-month highs hit earlier in the week.

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Japan's Nikkei dithered either side of flat in very quiet trade, having touched a 13-month top on Wednesday. South Korean stocks eased 0.15 per centafter hitting their highest since May, while Shanghai blue chips lost 0.08 per cent.

E-Mini futures for the S&P 500 eased 0.1 per cent.

Reuters reported on Wednesday a meeting between USPresident Donald Trump and Chinese President Xi Jinping to sign an interim trade deal could be delayed until December as discussions continue over terms and venue.

Among various suggestions was to sign a deal after a scheduled NATO meeting in early December.

"One could take the view that by not committing to meet the original deadline it gives more time for a somewhat more comprehensive agreement to be thrashed out," said Ray Attrill, head of FX strategy at National Australia Bank.

"But markets have understandably jumped the other way, exhibiting a slight loss of confidence that anything more substantial than an agreement not to further lift tariffs, in return for some increase in US agricultural purchases, can be agreed by way of an initial deal."

Wall Street was underwhelmed by the news and the Dow ended Wednesday all but flat, while the S&P 500gained 0.07 per centand the Nasdaqdropped 0.29 per cent.

HP Incrose over 6 per centafter Reuters reported USprinter maker Xerox Holdings Corphas made a roughly $33 billion cash-and-stock offer for the computer group.

The pause in the risk rally helped bonds recoup a little of their recent losses. Yields on benchmark US10-year notesfell back to 1.81 per centfrom a two-month top of 1.87 per cent.

That, in turn, restrained the dollar, which eased to 108.74 yenfrom a weekly high of 109.24. The dollar was steady on a basket of currencies at 97.965.

The euro was struggling to sustain any bounce at $1.1061, perilously close to chart support at $1.1060.

Spot gold was little changed at $1,490.38 per ounceand well within recent tight trading ranges.

Oil prices nursed losses after taking a hit from a surprisingly large build in UScrude inventories.

UScrudewas 6 cents lower at $56.29 a barrel, while Brent crudeslipped 7 cents to $61.67.