GLOBAL MARKETS-Asian shares give up gains as HK chaos hits sentiment

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asian shares inch up, Nikkei starts on a firm note
* Focus on U.S.-China trade talks
* Gold near three-month lows

By Swati Pandey
SYDNEY, Nov 11 (Reuters) - Asian shares reversed gains on
Monday, the yen ticked higher and gold jumped as fresh violence
broke out in Hong Kong, while uncertainty still remained over
whether the United States and China could end their damaging
trade war.
Hong Kong's Hang Seng index .HSI led the losses in Asia,
down more than 1%, after police fired live rounds at protestors
on the eastern side of Hong Kong island. Cable TV and other Hong
Kong media reported at least one protester being wounded. Video
footage showed a protester lying in a pool of blood.
Chinese shares too started lower with the blue-chip CSI300
index .CSI300 down 0.6%. South Korea's KOSPI .KS11 lost 0.7%
Japan's Nikkei .N225 gave up early gains to drift away
from a recent 13-month high after data showed the country's core
machinery orders fell for a third straight month. Australian shares .AXJO bucked the downbeat trend, rising
0.5% to a two-week high.
That left MSCI's broadest index of Asia-Pacific shares
outside Japan .MIAPJ0000PUS down 0.5%.
"The China-U.S. trade war and the Hong Kong protest are
combining to cast a negative pall on Asian markets today," said
James McGlew, analyst at stockbroking firm Argonaut.
"Hong Kong protests have been dragging on for a while and
the view from the financial world is that it's really starting
to bite now. The further this drags on it's certainly going to
be very negative."
Gold, which rises during times of uncertainty, rebounded
from a three-month low touched on Friday to be last up 0.4% at
$1,463.5 an ounce. XAU=
In currencies, the Japanese yen gained on the dollar to
109.11 while the Australian dollar, a liquid gauge for risk, was
off slightly at $0.6855.
The dollar index =USD was mostly flat at 98.353 as was the
euro at $1.102.
Market attention was also on the U.S.-China trade talks.
U.S. President Donald Trump told reporters on Saturday that
talks with China had moved more slowly than he would have liked,
but added that Beijing wanted a deal more than he did.

That was a more upbeat tone than just a few days earlier
when he had stressed that the White House would not agree to a
full rollback of existing tariffs, remarks that hit stock prices
and the dollar.
"Despite his bluster that 'China wants a trade deal more
than I do', markets sense that Trump is likely quite keen to
call a truce on what is becoming a serious U.S. economic risk
heading into the 2020 election year," said David Bassanese,
Sydney-based economist at Betashares.
By the close of Wall Street on Friday, optimism had returned
to the market as investors bet that Washington needs a deal and
it is in the interest of China, too. All three major U.S.
indexes eked out record closing highs.
The Dow .DJI inched up while the S&P 500 .SPX climbed
0.3% and the Nasdaq Composite .IXIC added 0.5%. The record
closing high by the S&P 500 was the fourth in six sessions as
U.S. stocks rallied on hopes of a trade deal.
In early Asian hours on Monday, E-minis for the S&P500
ESc1 were 0.2% lower indicating a weak open later in the day.
"Focus this week will again be on any reports on U.S.-China
trade negotiations," Bassanese said. "There is still a lingering
risk that talks could fail once again, in which case the recent
risk-on global sentiment could be quickly unwound."
U.S. officials said a lot of work remained to be done when
Trump announced the outlines of an interim deal last month, and
Beijing has since pushed back on U.S. demands for big
agricultural purchases, among other issues. Analysts said the outlook for equities was highly dependent
on U.S. economic data as a U.S.-China trade agreement would help
bolster manufacturing and industrial sectors.
Data on October U.S. industrial production and retail sales,
along with the National Federation of Independent Business's
monthly small business survey, are scheduled for release this
week.
Elsewhere, benchmark Brent crude LCOc1 fell 43 cents to
$62.08 a barrel while West Texas Intermediate (WTI) crude CLc1
slipped 35 cents to $56.89 a barrel.

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(Editing by Jane Wardell and Jacqueline Wong)