GLOBAL MARKETS-Asia stocks edge up as weak data lift stimulus hopes

* MSCI Asia-Pacific index up 0.1%, Nikkei gains 0.4%
* Stocks up amid U.S., China and euro zone stimulus hopes
* Euro capped with ECB expected to cut rates later this week
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro
TOKYO, Sept 9 (Reuters) - Asian stocks tip-toed higher on
Monday amid a cautious market mood as investors hoped for
stimulus to support growth in the world's major economies.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS added 0.1%.
The Shanghai Composite Index .SSEC was up 0.4%.
Australian stocks .AXJO edged up 0.1%, South Korea's KOSPI
.KS11 rose 0.7% and Japan's Nikkei .N225 was up 0.4%.
The Dow .DJI rose 0.25% and the S&P 500 .SPX edged up
0.1% on Friday.
Global equity markets received a lift after China's central
bank said on Friday it was reducing how much cash banks must
hold in reserve, releasing liquidity to shore up an economy
slowed by the Sino-U.S. trade conflict. Underlining the need for more stimulus, data on Sunday
showed China's exports unexpectedly fell in August as shipments
to the United States plummeted. Risk sentiment was also fortified as Federal Reserve Board
Chairman Jerome Powell said Friday that the central bank would
continue to act "as appropriate" to sustain economic expansion
in the world's biggest economy. Broader stock market gains were tempered in the wake of
lacklustre economic data - U.S. job growth slowed more than
expected in August - although even this was seen as a positive
factor for equities. "Equities usually respond negatively to soft data. But the
fact that the U.S. jobs report shows the market is banking on
stimulus, expecting the Fed to respond to economic weakness with
rate cuts," said Masahiro Ichikawa, senior strategist at
Sumitomo Mitsui DS Asset Management.
Buoying market confidence on Monday were expectations that
the European Central Bank would cut interest rates on Thursday.
"The equity markets will receive a further lift and
consolidate their recent gains if they can confirm the ECB's
dovish stance," Ichikawa at Sumitomo Mitsui DS Asset Management
said.
The dollar was capped as U.S. yields came off two-week highs
after Friday's soft U.S. jobs report also raised expectations
for a Fed rate cut.
The greenback traded at 106.840 yen JPY= , off the
one-month peak of 107.235 scaled late last week.
The euro was steady at $1.1025 EUR= , weighed down ahead of
Thursday's ECB policy decision and near a 28-month low of
$1.0926 set last week.
The Australian dollar AUD=D4 , sensitive to shifts in
broader risk appetite, hovered near a five-week peak of $0.6862
set on Friday.
The pound was little changed at $1.2282 GBP=D3 . Sterling
has bounced from a three-year low set a week ago as the threat
of Britain leaving the European Union without a deal on Oct. 31
was seen to diminish.
But political uncertainty remains, preventing the pound from
regaining further ground. British lawmakers will on Monday vote
on whether to hold an early election.
The 10-year U.S. Treasury yield US10YT=RR was at 1.5670%
after bouncing to 1.6080% on Friday, its highest since Aug. 23.
Brent crude oil futures LCOc1 gained 0.5% to $61.85 per
barrel after Saudi Arabia signalled that production cuts will
continue under a new energy minister. O/R

(Editing by Sam Holmes and Gerry Doyle)