GLOBAL MARKETS-Asian shares up as investors cheer 'phase one' Sino-U.S. trade deal

* MSCI Asia ex-Japan touches near 8-mnth high
* Australian shares lead region, boosted by easing
expectations
* Chinese shares flat despite deal, strong output, sales
data
* Investors welcome trade deal but await details
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Dec 16 (Reuters) - A broad gauge of Asian share
markets hit nearly eight-month highs on Monday after the United
States and China agreed a preliminary trade deal, and amid
policy-easing hopes in Australia, but profit-taking and caution
over the deal's details capped gains.
U.S. Trade Representative Robert Lighthizer on Sunday said a
deal was "totally done", notwithstanding some needed revisions,
and would nearly double U.S. exports to China over the next two
years. Positive sentiment helped push the MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS to its highest
level since April 18. It was last up 0.35%.
Australia's S&P/ASX 200 .AXJO led the way as it jumped
1.74%, while shares in Taiwan .TWII added 0.23%.
Ryan Felsman, senior economist at CommSec in Sydney, said
that the trade deal and the receding risk of a disorderly Brexit
after the UK general election produced a strong Conservative
majority provided support for sentiment in Australia.
A lower-than-expected Austrlian budget surplus due to a
sluggish economy has "built expectations by markets for further
easing from the Reserve Bank (of Australia)," he said,
explaining the strong perfomance of Aussie shares.
Chinese investors had a more tepid reaction to the trade
news, with the blue-chip CSI300 index .CSI300 finding little
impetus to rise further after trade hopes fanned a nearly 2%
rise on Friday, despite data showing the country's industrial
output growth and retail sales jumped more than expected in
November. The CSI300 index was down 0.01% at the midday break.
Japan's Nikkei 225 .N225 succumbed to some profit-taking,
easing 0.05% after surging 2.55% to a 14-month closing high on
Friday.
The "phase one" agreement suspended a threatened round of
U.S. tariffs on a $160 billion list of Chinese imports that was
scheduled to take effect on Sunday. The United States also
agreed to halve the tariff rate, to 7.5%, on $120 billion worth
of Chinese goods.
Felsman at CommSec said the deal was a positive factor in
the market, but investors awaited further details. The reduction
in U.S. tariffs may have also disappointed some investors
looking for more aggressive action, he added.
"Certainly there were expectations perhaps that the rollback
would be more significant than just 50%," he said.
The 17-month-old trade dispute between the world's two
largest economies has roiled financial markets and taken a toll
on world economic growth.
"The announcement is a step in the right direction for the
two nations, but does not completely reduce the chances of trade
disputes between the two nations in the year," ANZ analysts said
in a morning note.
U.S. shares had struck a cautious note on Friday, paring
intial gains to end barely higher as weary investors awaited
signs of a concrete deal.
However, the news of a deal was still enough to send the S&P
500 .SPX to a record closing high of 3,168.8, up 0.01%. The
Nasdaq Composite .IXIC added 0.2% to end at 8,734.88, also a
record, and the Dow Jones Industrial Average .DJI rose 0.01%
to 28,135.38.
U.S. Treasury yields moved higher on Monday, reflecting a
more positive mood. Benchmark 10-year Treasury notes US10YT=RR
rose to 1.84% compared with their U.S. close of 1.821% on
Friday, and the two-year yield US2YT=RR touched 1.6221%
compared with a U.S. close of 1.604%.
The dollar was slightly higher against the yen at 109.38
JPY= and the euro was up 0.12% at $1.1132. Sterling, which
jumped last week after the UK election, gained 0.48% to $1.3389.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was down 0.11% at 97.067.
Oil prices, which had risen on Friday following the deal,
cooled in early Asian trade on Monday. Brent crude shed 0.37% to
$64.98 per barrel, and U.S. West Texas Intermediate crude CLc1
was down 0.40% at $59.83 per barrel.
Spot gold prices fell 0.06% XAU= , with the precious metal
trading hands at $1,474.63 per ounce. GOL/