GLOBAL MARKETS-Asian shares firm as China's GDP raises hopes of recovery

* MSCI Asia ex-Japan +0.1%, Nikkei +0.49%
* Global stock index inches up to record highs
* China 2019, Q4 GDP growth in line with expectations
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Jan 17 (Reuters) - Asian shares rose on Friday
after global stock indexes and Wall Street posted more records,
and as China's economic growth matched expectations in spite of
U.S. trade pressures.
The world's second-largest economy grew 6.0% in the fourth
quarter of 2019 from a year earlier, and 6.1% for the full year,
official data showed on Friday.
While China's growth in 2019 was the slowest pace of
economic expansion in 29 years, held back by anaemic domestic
demand and the damaging trade war with the United States, it was
in line with analyst expectations and within the government's
official target. "This is all good news and positive for the China story. All
the data coming out, from industrial production, fixed asset to
retail sales, they are all showing signs of bottoming out as the
trade cycle bottoms out," said Daniel Gerard, senior multi-asset
strategist at State Street Global Markets in Hong Kong.
Recent data has pointed to an improvement in Chinese
manufacturing and business confidence as trade tensions eased,
but analysts are not sure if the gains can be sustained and
Beijing is widely expected to roll out more stimulus measures.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.1%.
China's blue-chip CSI300 index .CSI300 was 0.27% higher,
extending a rally fuelled by hopes for improving relations with
the United States that has seen it gain 9% since the beginning
of December.
Australian shares .AXJO added 0.47% after setting four
consecutive record closing highs in previous days and Seoul's
KOSPI .KS11 rose 0.12%. Japan's Nikkei .N225 was up 0.49%
after touching 15-month highs earlier in the session.
MSCI's global share index .MIWD00000PUS touched new highs
and was last up 0.03%.
But analysts say global equities may find it difficult to
maintain momentum from their recent rally as optimism over the
U.S.-China trade truce gives way to uncertainty over the next
steps in trade talks.
While a Phase 1 deal signed by China and the United States
on Wednesday is seen as defusing the 18-month row that has hit
global growth, experts say it is unlikely to provide much balm
for broader frictions between the two countries. Most of the
tariffs imposed during the dispute remain in place and a number
of thorny issues that sparked the conflict are still unresolved.
"The challenge from here is how long we can maintain these
improvements," said Steven Daghlian, market analyst at CommSec
in Sydney.
"Speaking of the Aussie market specifically, a 6% gain in
two weeks is obviously a massive challenge to replicate in the
tail end of the month. You don't really see 10, 11, 12%
improvements over the course of a month without any gigantic
positive catalysts."
In the United States on Thursday, a combination of upbeat
earnings from Morgan Stanley, rising U.S. retail sales, a strong
labour market and robust manufacturing data helped to lift Wall
Street to record highs. .N
The Phase 1 deal and the U.S. Senate's approval of a revamp
to the 26-year-old North American Free Trade Agreement also
boosted investor spirits. The Dow Jones Industrial Average .DJI rose 0.92% to
29,297.64, the S&P 500 .SPX gained 0.84% to 3,316.81 and the
Nasdaq Composite .IXIC added 1.06% to 9,357.13.
The U.S. data supported the dollar, which held steady on
Friday. The greenback hit eight-month highs against the yen
JPY= before trimming its advance to rise 0.05% to 110.20. The
euro was little changed at $1.1136. EUR=
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was a tick lower at 97.319.
The rally in equities was mirrored in U.S. benchmark 10-year
Treasury notes, which saw yields rise to 1.8266% from their
close on Thursday at 1.809%. Yields rise as prices fall.
Commodity markets were quiet, with Brent crude futures
LCOc1 adding just 3 cents to $64.58 per barrel. U.S. West
Texas Intermediate crude futures CLc1 were also 3 cents higher
at $58.55 per barrel.
Gold added 0.05% to $1,553.35 per ounce on the spot market.
XAU= /GOL