GLOBAL MARKETS-Asia shares bounce, hope for best on U.S.-China trade

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Shares recoup some of last week's losses in early trade
* U.S. officials continue to sound optimistic on trade
* Pro-democracy candidates sweep to power in HK vote
* Dollar benefits as U.S. economy outperforms

By Wayne Cole
SYDNEY, Nov 25 (Reuters) - Asian shares made guarded gains
on Monday as investors braced for another week of likely
conflicting commentary on the Sino-U.S. trade dispute, while the
outperformance of recent U.S. economic data gave the dollar a
leg up on its peers.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS bounced 0.26%, after losing 0.4% last week.
Japan's Nikkei .N225 firmed 0.8% in early trade, while
Australian stocks .AXJO rose 0.5%. E-Mini futures for the S&P
500 ESc1 added 0.2%.
On Saturday, U.S. national security adviser Robert O'Brien
said an initial trade agreement with China is still possible by
the end of the year, but warned Washington would not turn a
blind eye to what happens in Hong Kong. The comments add to worries that a Chinese crackdown on
anti-government protests in Hong Kong could further complicate
the talks.
Over the weekend, pro-democracy candidates in Hong Kong
romped to a landslide and symbolic majority in district council
elections in the embattled city.
"Markets are showing some signs of tiring of the steady drip
feed of upbeat comments from U.S. officials and no signs of a
final agreement looking likely," said Robert Rennie, head of
financial market strategy at Westpac.
He noted six weeks had passed since the "phase-one" deal was
agreed in principle yet there was still no deal in place.
"Key for markets will thus be whether the Dec. 15 tariffs
covering approximately $156 billion of largely technology
imports are postponed and whether a deal can be signed ahead of
that date, with press suggesting that these tariffs will be
delayed to give negotiators more time."
Reuters reported an ambitious "phase two" trade deal was
also looking less likely, according to U.S. and Beijing
officials, lawmakers and trade experts. DIRTY'
In currency markets, the dollar had rallied on Friday when
U.S. manufacturing surveys beat forecasts, just as European
Union numbers disappointed. "U.S. economic data outperformed, highlighting again the
resilience of the economy and that while global growth has
slowed, it remains the least dirty t-shirt in the laundry
basket," said Tapas Strickland, a director of economics and
markets at National Australia Bank.
"For the EU data, the important takeaway was the ongoing
decline in the manufacturing sector is now spreading to the
larger services sector, a worrying sign for the global economy."
European Central Bank President Christine Lagarde on Friday
called on euro zone governments to strengthen domestic demand
after a global trade war brought a decade of export-driven
growth to an abrupt end. Federal Reserve Chair Jerome Powell speaks later on Monday
and is expected to underline the steady outlook for rates given
the better economic figures.
The euro was off at $1.1021 EUR= on Monday, having
breached chart support at $1.1040, while the dollar edged up to
108.72 yen JPY= .
The dollar was steady on a basket of currencies at 98.258
.DXY , after gaining 0.3% last week.
Spot gold was flat at $1,460.62 per ounce XAU= , restrained
by the bounce in the dollar.
Oil prices held near two-month highs helped by expectations
of an extension to OPEC+ production cuts. O/R
Brent crude LCOc1 futures firmed 19 cents to $63.58, while
U.S. crude CLc1 rose 24 cents to $58.01 a barrel.

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(Editing by Sam Holmes)