GLOBAL MARKETS-Asian shares climb as Trump says U.S. China trade deal near

* MSCI Asia ex-Japan +0.29%; Nikkei +0.39%
* Futures point to higher open for European shares
* China shares fall on weak industrial profits
* S&P 500, Dow Jones, Nasdaq finish at record closing highs
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Nov 27 (Reuters) - Asian shares rose on Wednesday
and European stocks looked set for gains after U.S. President
Donald Trump said negotiators were close to inking an initial
trade deal, while expectations the Federal Reserve will keep
rates low underpinned sentiment.
Trump's upbeat comments on trade stoked confidence in Asia
with MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS up 0.29%. Australian shares .AXJO added 0.93%
and Japan's Nikkei .N225 rose 0.39%.
In Europe, pan-region Euro Stoxx 50 futures STXEc1 were up
0.16% at 3,710, German DAX futures FDXc1 gained 0.16% to
13,262.5 and FTSE futures FFIc1 rose 0.1% to 7,412.
Chinese blue-chip shares .CSI300 , in contrast, dropped
0.21% after the data showed profits at China's industrial firms
declined in annual terms for the third consecutive month in
October. The decline tracked sustained drops in producer prices
and exports and underscored slowing momentum in the world's
second-largest economy. Trump said on Tuesday the United States and China are close
to agreement on the first phase of a trade deal after top
negotiators from the two countries spoke by telephone and agreed
to keep working on remaining issues. The positive mood pushed Wall Street indexes to fresh record
closing highs on Tuesday. But while Trump said Washington was in
the "final throes" of work on a trade deal with Beijing, he also
underscored U.S. support for protesters in Hong Kong, seen as a
sore point for Beijing.
Trump's comments came alongside softer-than-expected
economic data from the United States, which showed a fourth
straight monthly contraction in consumer confidence and an
unexpected drop in new home sales in October. However, consumer confidence still remained at levels able
to support steady consumer spending, and the housing data for
September was revised up, with purchases touching more than
12-year highs. Kay Van-Petersen, global macro strategist at Saxo Capital
Markets in Singapore, said while U.S.-China trade headlines may
be driving some tactical, near-term moves in the market, they
were mostly just "noise".
The broader market direction is "about the accommodative Fed
and accommodative monetary policy and the fact that structurally
the meta-trend is still lower in yields and rates," he said.
Some analysts said a fall in U.S. bond yields on Tuesday
also pointed to more mechanical explanations beyond trade for
rising equity prices.
"It reinforces the notion that it really is the Fed
pump-priming to grease the wheels of market liquidity which is
driving both these moves," Greg McKenna, strategist at McKenna
Macro, said in a morning note.
Fed Chair Jerome Powell said on Monday monetary policy was
"well positioned" to support the strong U.S. labor market.
On Tuesday, the Dow Jones Industrial Average .DJI rose
0.2% to 28,121.68, the S&P 500 .SPX gained 0.22% to 3,140.52
and the Nasdaq Composite .IXIC added 0.18% to 8,647.93. All
three indexes notched record closing highs. On Wednesday, the rally in U.S. Treasuries moderated across
the curve, with benchmark 10-year notes US10YT=RR yielding
1.7431%, up from their U.S. close of 1.74% on Tuesday.
The two-year yield US2YT=RR , watched as a guide to market
expectations of Fed policy, rose to 1.5939% compared with a U.S.
close of 1.586%.
In currency markets, the dollar strengthened 0.11% against
the yen to 109.15 JPY= and the euro EUR= weakened 0.08% to
buy $1.1009.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was up 0.09% at 98.341.
Oil prices retreated after rising Tuesday on reassuring
trade headlines. U.S. West Texas Intermediate crude CLc1 was
down 0.21% at $58.29 per barrel.
Global benchmark Brent crude LCOc1 lost 0.11% to $64.20
per barrel.
Gold was lower, changing hands at $1,458.33 per ounce on the
spot market XAU= , down 0.2%. GOL/