GLOBAL MARKETS-Asia stocks gain as soft data lift stimulus hopes

* MSCI Asia-Pacific index up 0.2%, Nikkei gains 0.5%
* European stocks futures gain in early trade
* Stocks up amid U.S., China and euro zone stimulus hopes
* Euro capped with ECB expected to cut rates later this week
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Shinichi Saoshiro
TOKYO, Sept 9 (Reuters) - Asian stocks edged higher on
Monday amid a cautious mood as investors pinned their hopes on
expected global stimulus to support slowing growth in the
world's major economies.
Global equity markets also received a lift after the Chinese
central bank's move on Friday to cut how much cash banks must
hold in reserve, releasing liquidity to shore up an economy hit
by the Sino-U.S. trade conflict. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS added 0.2%. The Shanghai Composite Index .SSEC
was up 0.6%.
South Korea's KOSPI .KS11 rose 0.6% and Japan's Nikkei
.N225 advanced 0.5%.
Tracking the cautious optimism in Asia, the pan-region Euro
Stoxx 50 futures STXEc1 was up 0.1%, German DAX futures
FDXc1 added 0.25% and Britain's FTSE futures FFIc1 gained
0.3% in early European trade.
Underlining the need for more stimulus, data on Sunday
showed China's exports unexpectedly fell in August as shipments
to the United States plummeted. Risk sentiment was also fortified as Federal Reserve Board
Chairman Jerome Powell said on Friday that the central bank
would continue to act "as appropriate" to sustain economic
expansion in the world's biggest economy. Broader stock market gains were tempered by lacklustre
economic data - U.S. job growth slowed more than expected in
August - although even this was seen as a positive factor for
equities if it prompted more policy support measures. "Equities usually respond negatively to soft data. But the
fact that the U.S. jobs report shows the market is banking on
stimulus, expecting the Fed to respond to economic weakness with
rate cuts," said Masahiro Ichikawa, senior strategist at
Sumitomo Mitsui DS Asset Management.
Buoying market confidence on Monday were expectations that
the European Central Bank would cut interest rates on Thursday.
"The equity markets will receive a further lift and
consolidate their recent gains if they can confirm the ECB's
dovish stance," Ichikawa at Sumitomo Mitsui DS Asset Management
said.
The dollar was capped as U.S. yields came off two-week highs
after Friday's soft U.S. jobs report also raised expectations
for a Fed rate cut.
The greenback traded at 106.890 yen JPY= , off the
one-month peak of 107.235 scaled late last week.
The euro was steady at $1.1027 EUR= , weighed down ahead of
Thursday's ECB policy decision and near a 28-month low of
$1.0926 set last week.
The Australian dollar AUD=D4 , sensitive to shifts in
broader risk appetite, hovered near a five-week peak of $0.6862
set on Friday.
The pound was little changed at $1.2277 GBP=D3 . Sterling
has bounced from a three-year low set a week ago as the threat
of Britain leaving the European Union without a deal on Oct. 31
was seen to diminish.
But political uncertainty remains, preventing the pound from
regaining further ground. British lawmakers will on Monday vote
on whether to hold an early election.
The 10-year U.S. Treasury yield US10YT=RR had bounced to a
two-week high of 1.6080% on Friday as risk aversion which
engulfed global markets at the start of last week eased. But it
was last at 1.5650% and creeping back towards to a three-year
low of 1.4290% set on Sept. 3.
U.S. bonds continue to attract demand despite their
extremely low yields. Data on Monday showed Japanese investors
in July were largest net buyers of U.S. bonds in three years,
with the appeal of European bonds diminishing due to their
negative yields. "The attraction of U.S. bonds has diminished since the start
of the year. But U.S. bonds still remain the highest yielding
within industrialised economies," said Kenta Inoue, senior
market economist at Mitsubishi UFJ Morgan Stanley Securities.
Brent crude oil futures LCOc1 gained 1% to $62.14 per
barrel after Saudi Arabia signalled that production cuts will
continue under a new energy minister. O/R

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(Editing by Sam Holmes and Gerry Doyle)