Global stocks inch up on trade hopes but growth fears temper gains

Globalshares tickedupon Tuesday after USTreasury Secretary Steven Mnuchin said that US-Chinatradetalks will resume next month, but lingering concerns about slowingglobalgrowth tempered the overall appetite for riskier assets.

MSCI's broadest index of Asia-Pacific shares outside Japan movedup0.06 per cent, supported by 0.4 per centgains in mainland Chinese shares, while Japan's Nikkei edgedup0.20 per centafter a market holiday on Monday.

U.S. stock futures gained 0.39 per cent, helped by comments from USTreasury Secretary Steven Mnuchin that US-Chinatradetalks will resume next week. He later clarified that the negotiations will take place in two weeks.

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"The comments gave a little bit of boost to sentiment, but markets are still not that optimistic either," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset Management.

"It seems there has been a lot going on behind the scenes," he said, referring to unusual exchanges in which USPresident Donald Trump questioned a decision by his toptradenegotiators to ask Chinese officials to delay a planned trip to U.S. farming regions.

That cancellation was seen by markets as a sign of falloutin the US-China talks and sentshare prices lower on Friday.

The dispute between the world's two largest economies has dragged on for well over a year, rattling investors and dentingglobalgrowth.

Concerns over a slowingglobaleconomy remained front and centre for financial markets, as poor business activity readings from the eurozone deepened fears of a recession and suggested more stimulus was required.

"While the Nikkei was fairly well supported, we need more catalysts to further rises. That's also true for U.S. markets as well," said Takeo Kamai, Head of Execution Service at CLSA.

"While speculators have reacted to thetrade-related headlines, real-money people appear to be staying on the sideline", Kamai added.

The euro wobbled at $1.0991, falling below key support around $1.10 and not far from a 28-month low of $1.0926 touched earlier this month.

Sterling also slipped to $1.2435, having peaked at a two-month high of $1.2582 set on Friday astraders looked to a Supreme Court ruling on whether Prime Minister Boris Johnson misled Queen Elizabeth over his reasons for suspending parliament this month.

The Supreme Court said that it will issue its decision at 0930 GMT on Tuesday.

The collapse of the British travel firm Thomas Cook could also put some pressure on the Pound by highlighting the weakness of British retailing.

The Yentraded at 107.57 Yen per Dollar, having hit two-week highs of 107.32 on Monday.

USTreasuries yields extended their decline, with the 10-year rate falling to 1.716 per cent, edging down further from 1.908 per centmarked on September13.

Oil prices dipped slightly but were still supported by doubts on whether Saudi Arabia would be able to restore full output as it has promised after the September14 attacks on its facilities.

Brent crude futures fell 0.42 per centto $64.50 a barrel while U.S. West Texas Intermediate (WTI) crude lost 0.34 per centto $58.44 per barrel.