GLOBAL MARKETS-Asia shares rise on trade talks hope, firm US data; safe havens sold

* MSCI Asia-Pacific index up 0.4%, Nikkei gains 0.4%
* European stock futures flat to touch lower in early trade
* U.S. jobs report in focus after improvements in risk
sentiment
* Safe-haven government bonds, yen on the defensive
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro
TOKYO, Sept 6 (Reuters) - Asian stocks gained on Friday,
joining a global trend as investors took heart from firm U.S.
economic data plans hopes a meeting between U.S. and Chinese
negotiators next month signals an easing in trade tensions.
The improvement in investors' appetite for risk reduced
demand for safe havens such as government bonds and the yen,
however.
In early European trade, the pan-region Euro Stoxx 50
futures STXEc1 and German DAX futures FDXc1 were little
changed, while Britain's FTSE futures FFIc1 inched down 0.1%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS added 0.4%, putting it on track for a 2.2%
weekly gain - which would make it the best week since mid-June.
The Shanghai Composite Index .SSEC edged up 0.1%. Hong
Kong's Hang Seng .HSI was up 0.2%, with some earlier gains
trimmed after rating agency Fitch downgraded the city's credit
rating following months of unrest. Australian stocks .AXJO gained 0.5%, South Korea's KOSPI
.KS11 climbed 0.1% and Japan's Nikkei .N225 advanced 0.4%.
Global equity markets welcomed news that the United States
and China agreed on Thursday to hold high-level talks early in
October, raising hopes for substantial progress in de-escalating
their long, bitter trade conflict. Upbeat U.S. data on Thursday also helped sentiment.
U.S. private payrolls increased in August at their fastest
pace in four months, according to ADP National Employment
Report. Separately the U.S. services industry rebounded last
month to its fastest expansion since February, according to the
Institute for Supply Management's non-manufacturing purchasing
managers index (PMI). "The strong U.S. data are the main part of the latest turn
in markets as they are key factors impacting equities and U.S.
yields, therefore determining how long this 'risk on' phase will
last," said Junichi Ishikawa, senior FX strategist at IG
Securities in Tokyo.
On Thursday, the Dow .DJI added 1.4%, the S&P 500 .SPX
climbed 1.3% and Nasdaq .IXIC rose 1.75%.
Ishikawa at IG Securities said a U.S. August jobs report ou
later in the global day "will get more attention than usual as
it could further fuel the risk-on phase, which in turn would
boost the dollar."
The non-farm payroll report is expected to show an increase
of 158,000 and the unemployment rate holding steady at 3.7%.
The dollar stood at 107.000 yen JPY= after climbing to a
one-month high of 107.235 overnight. The greenback has gained
about 0.7% against the safe-haven yen.
The pound GBP=D3 hovered near a six-week peak of $1.2353
scaled the previous day on hopes that Britain could avoid
exiting the European Union without a deal.
Sterling had fallen to a three-year low of $1.1959 midweek
after British Prime Minister Boris Johnson stoked fears of a
no-deal Brexit.
The euro was steady at $1.1039 EUR= after rising 0.5%
overnight, when it was lifted by sterling's bounce.
The dollar index against a basket of six major currencies
.DXY was little changed at 98.369 after pulling back from a
one-week low of 98.085 the previous day, thanks to a rise in
U.S. Treasury yields.
U.S. Treasuries fell in price and their yields rebounded
from multi-year lows as investors moved out of safety assets
into equities. US/
The 10-year Treasury yield US10YT=RR was at 1.536%, having
risen from a three-year trough of 1.428% plumbed midweek as soft
economic data and Sino-U.S. trade worries stoked global
recession concerns.
"The recent panic in markets was excessive. And if a
sustained reversal of fragile sentiment gets under way, U.S.
equities will test fresh record highs and a corresponding drop
in bond prices will present an good bargain hunting
opportunity," said Eiichiro Tani, chief strategist at Daiwa
Securities.
Japan's 10-year government bond yield JP10YTN=JBTC climbed
2.5 basis points to minus 0.250%, putting some distance between
a three-year low of minus 0.295% set earlier this week.
The Australian dollar AUD=D4 traded close to a one-month
peak of $0.6830. It has gained more than 1% this week amid the
thaw in U.S.-China trade tensions and tempered prospects for an
immediate interest rate cut by the Reserve Bank of Australia.
Brent crude oil futures LCOc1 were little changed at
$60.97 per barrel, losing some steam after posting strong gains
over the past two sessions.
Brent had climbed to a one-month peak of $62.40 per barrel
on Thursday on a decline in U.S. crude inventories and eased
trade war worries.

(Editing by Simon Cameron-Moore)