GLOBAL MARKETS-Asia stocks wobble near 3-1/2-mth low as trade worries linger

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* MSCI Asia-Pacific index dips 0.05%, Nikkei sheds 0.4%
* Oil surge stalls on bigger-than-expected U.S. inventory
build

By Shinichi Saoshiro
TOKYO, May 15 (Reuters) - Asian stocks struggled near a
3-1/2-month low on Wednesday on lingering concerns over the
economic impact of a U.S.-China trade war, although an overnight
bounce on Wall Street helped limit the losses.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS edged down 0.05%.
The index had fallen to its lowest level since the end of
January the previous day as a trade conflict between the United
States and China intensified. Beijing on Monday imposed a tariff
hike on U.S. goods following Washington's decision last week to
hike its levies on Chinese imports.
Australian stocks .AXJO added 0.07%, South Korea's KOSPI
.KS11 slipped 0.1% and Japan's Nikkei .N225 shed 0.4%.
U.S. stocks on Tuesday reclaimed some of the ground lost in
the prior day's steep sell-off, with tariff-sensitive technology
stocks heartened by a slight softening in U.S.-China trade
rhetoric. .N
U.S. President Donald Trump on Tuesday said he had a "very
good" dialogue with China and insisted talks between the world's
two largest economies had not collapsed. Yet, investors braced for a protracted U.S.-China trade war.
"In the short term the equity markets have begun digesting
the latest round of the trade war, said Soichiro Monji, senior
strategist at Sumitomo Mitsui DS Asset Management, adding that a
bit of calm is returning to some markets as a result.
"Still, the U.S.-China row looks to continue in the coming
months. China did not seem to present a totally unified front in
the latest round of the trade spat and its reaction bears
watching going forward."
On the day, investors will look to a batch of Chinese
economic data due later for a further gauge of the health of the
world's second-biggest economy.
The Chinese yuan stood little changed at 6.9051 per dollar
in offshore trade CNH=D4 , having edged away from a five-month
trough of 6.9200 set on Tuesday.
The dollar traded a shade higher at 109.675 yen JPY= ,
pulling away from a three-month low of 109.020 plumbed on Monday
when trade war worries boosted investor demand for the
safe-haven Japanese currency.
The euro was steady at $1.1202 EUR= . The common currency
had dipped nearly 0.2% the previous day after Italy's deputy
prime minister said the country is ready to break European Union
budget rules on debt levels if necessary to spur employment.
The dollar index against a basket of six major currencies
was nearly flat at 97.534 .DXY after gaining 0.2% the previous
day.
In commodities, U.S. crude futures were down 1.04% at $61.14
per barrel CLc1 after the American Petroleum Institute (API)
reported a bigger-than-expected build in crude oil inventory.
U.S. crude inventories rose by 8.6 million barrels in the
week to May 10 to 477.8 million, compared with analysts'
expectations for a decrease of 800,000 barrels. Brent crude LCOc1 lost 0.69% to $70.75 per barrel.
Brent and U.S. crude futures had surged the previous day
after top exporter Saudi Arabia said explosive-laden drones
launched by a Yemeni-armed movement aligned to Iran had attacked
facilities belonging to state oil company Aramco.

(Editing by Shri Navaratnam)