GLOBAL MARKETS-Asia stocks edge up on Mexico reprieve but Sino-U.S. rift caps gains

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Trump threatens more tariffs on China imports, curbs stock
gains
* Dollar stalls after rising on U.S.-Mexico tariff agreement
* Crude oil finds some traction after previous day's slide

By Shinichi Saoshiro
TOKYO, June 11 (Reuters) - Asian stocks made modest gains on
Tuesday after the Trump administration shelved plans for tariffs
against Mexico, lifting Wall Street, however, fresh U.S. trade
threats against China are expected to limit any major investor
sentiment boost.
U.S. President Donald Trump said on Monday he was ready to
impose another round of punitive tariffs on Chinese imports if
he cannot make progress in trade talks with Chinese President Xi
Jinping at the G20 summit. The U.S. president has repeatedly said he expected to meet
Xi at the June 28-29 summit in Osaka, Japan although China is
yet to confirm any such meeting.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.2%. Australian stocks .AXJO rose
0.9%, South Korea's KOSPI .KS11 added 0.15% and Japan's Nikkei
.N225 edged up 0.05%.
U.S. stocks extended their recent climb on Monday, with the
Dow .DJI rising for the sixth trading day following a decision
by the United States to forego imposing tariffs on Mexican
goods. .N
"The lift from the U.S.-Mexico trade development is likely
to be a temporary one for the equity markets as the bigger issue
between the United States and China remains unresolved," said
Masahiro Ichikawa, senior strategist at Sumitomo Mitsui DS Asset
Management.
"Nervousness will prevail in the markets until the G20
summit. And there is no guarantee that matters will improve even
if the U.S. and Chinese leaders meet at the summit."
In the currency markets, the dollar gave up some of the
modest gains it made against its peers overnight on news that
the United States and Mexico agreed on a deal to avoid tariffs.
The dollar was down 0.05% at 108.370 yen JPY= after
gaining 0.2% overnight.
The euro EUR= edged up 0.05% to $1.1318 following a loss
of 0.2% the previous day.
The dollar index against a basket of six major currencies
.DXY was a shade lower at 96.731 after advancing 0.2% on
Monday.
The benchmark U.S. Treasury 10-year yield US10YT=RR stood
little changed at 2.141%. The yield had risen about 6 basis
points overnight as the U.S.-Mexico deal boosted risk appetite
and curbed investor demand for safe-haven government debt.
U.S. West Texas Intermediate (WTI) crude oil futures CLc1
were up 0.13% at $53.33 per barrel, finding some traction after
sliding the previous day.
Crude oil fell on Monday, with U.S. futures losing 1.3%, as
major producers Saudi Arabia and Russia had yet to agree on
extending an output-cutting deal and with U.S.-China trade
tensions continuing to threaten demand for the commodity. O/R

(Editing by Sam Holmes)