GLOBAL MARKETS-Asian shares slip on trade deal worry, dollar defensive

* MSCI Asia ex-Japan -0.09%; Nikkei -0.63%
* Chinese officials doubt long-term trade deal with US -
Bloomberg
* More U.S. economic data due Friday
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Nov 1 (Reuters) - Asian shares fell on Friday in a
weak start to the month and off three-month highs struck this
week on fresh concerns over Sino-U.S. trade prospects and ahead
of U.S. economic data, while the dollar eased against major
rivals.
Chinese officials doubt that a comprehensive long-term trade
deal with Washington and U.S. President Donald Trump is
possible, Bloomberg reported on Thursday, citing unnamed
sources. The latest blow to hopes that the world's two largest
economies will reach a deal to end their bruising nearly
16-month trade war comes despite comments from Trump on Thursday
that the countries would soon announce a new site for the
signing of a "Phase One" trade deal after Chile cancelled a
planned summit set for mid-November. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was down 0.09% on the day, and about 0.5% lower
than three-month highs touched Thursday.
The losses in Asia mirrored falls in global stock markets on
Thursday, as MSCI's gauge of equity performance in 47 countries
.MIWD00000PUS fell from 20-month highs. The index continued to
ease on Friday, trimming 0.07%.
Japan's Nikkei .N225 slid 0.63% in early trade, and
Australian shares .AXJO were 0.12% lower.
News of China's doubts over a trade deal was "not entirely
unexpected", Greg McKenna, strategist at McKenna Macro, said in
a morning note to clients, noting that the falls in equity
markets were relatively small.
Retreats in the S&P 500 and the U.S. 10-year Treasury yield
indicated some technical resistance in the market, he said.
"Either way, today's deluge of manufacturing PMI's and then
U.S. non-farm (payrolls) tonight will be an important factor in
where markets head next," McKenna said.
The Institute for Supply Management is due to release data
from its survey of purchasing managers on Friday. A separate PMI
survey released Thursday by the Chicago Fed USCPMI=ECI showed
a sharper contraction in midwestern manufacturing activity for
October.
The yield on benchmark 10-year Treasury notes US10YT=RR
was a touch higher at 1.6927% compared with its U.S. close of
1.691% on Thursday. The two-year yield US2YT=RR , sensitive to
market expectations of Federal Reserve policy, was at 1.5279%
compared with a U.S. close of 1.526%.
The Fed cut interest rates for a third time this year on
Wednesday to help sustain U.S. growth, but signalled there would
be no further reductions unless the economy takes a turn for the
worse. In the currency market, the dollar was a touch weaker
against the safe-haven yen, trimming 0.06% to 107.95 JPY= .
The euro EUR= was 0.04% higher on the day at $1.1155,
while the dollar index .DXY , which tracks the greenback
against a basket of six major rivals, was down 0.07% at 97.285
on the day. The dollar index has fallen 0.56% this week.
U.S. crude CLc1 ticked up 0.26% to $54.32 a barrel and
Brent crude LCOc1 rose 0.07% to $59.66 per barrel.
Spot gold XAU= eased, trimming 0.04% to $1,512.57 per
ounce. GOL/