GLOBAL MARKETS-Asian shares gain on economy hopes, oil edges up on Mideast tensions

* Nikkei up 0.3%, ex-Japan Asia up 0.1%
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Sterling rises after Juncker's comments on Brexit

By Hideyuki Sano
TOKYO, Sept 20 (Reuters) - Asian share prices inched higher
on Friday as economic stimulus around the world eased fears of
economic deceleration while crude oil prices climbed on concerns
that last weekend's attacks on Saudi Arabia's oil facilities
still pose supply risks.
On Thursday, the S&P 500 .SPX ended flat, staying than
less than 1% below its closing record high hit in July while the
pan-European FTSEurofirst 300 .FTEU3 index also came within
sight of this year's peak.
Japan's Nikkei .N225 rose 0.34% to come within striking
distance of its year-to-date peak.
Asian shares have been lagging global peers in recent months
and MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS is on course to post its first weekly loss in
five, although it rose 0.08% early on Friday.
Monetary easing by the U.S. Federal Reserve this week and by
the European Central Bank last week underpinned investor
sentiment, while the latest U.S. economic data also eased
worries about slowdown in the world's largest economy.
The number of Americans filing applications for unemployment
benefits increased less than expected last week while home
resales rose to a 17-month high in August.
"Investors are starting to price in the possibility of
re-acceleration in the global economy next year. So far this
month China has taken steps to support the economy, and U.S. and
European central banks eased policy," said Nobuhiko Kuramochi,
chief strategist at Mizuho Securities.
"There are hopes of an interim or partial trade deal between
China as U.S. President Trump will need to shore up the economy
next year before the election," he added.
U.S. and Chinese deputy trade negotiators resumed
face-to-face talks for the first time in nearly two months on
Thursday, trying to lay the groundwork for high-level talks in
early October. Hopes for a deal were so strong that the markets shrugged
off a media report that a trade adviser to Trump has said the
U.S. president is ready to raise tariffs to 50 or 100 percent.
The New York Fed continued to inject a large amount of cash
in money markets to deal with funding squeeze since the start of
week, helping to bring down interest rates in the U.S. repo
market, a key funding market USONRP= . In currency markets, the British pound kept its uptrend
after European Commission President Jean-Claude Juncker said a
Brexit deal is possible and that if the Irish border backstop
which the British government wants removed could be replaced
with alternatives, it would not be needed. Sterling traded at $1.2525 GBP=D4 , up 0.02% so far on the
day, having hit a two-month high of $1.2560 on Thursday. The
British unit stood near its highest levels in almost four months
versus the euro at 88.19 pence per euro EURGBP= .
The euro was at $1.10455 EUR= , staying in a holding
pattern this week.
The yen traded flat at 108.03 yen to the dollar JPY= , off
1-1/2 month low of 108.48 yen hit on Wednesday.
The Brazilian real fell 1.4% on Thursday to 4.167 to the
dollar after the central bank slashed borrowing costs to an
all-time low and signalled it was prepared to do so again in the
coming months. Oil prices bounced back on continued worries about the
stability of oil supply as tensions between Saudi Arabia and
Iran showed little sign of abating after a weekend attack on
Saudi oil installations. Saudi-led forces on Friday launched a military operation on
northern Yemen against what it described as "legitimate military
targets", an incident that could aggravate regional tensions.
Washington said on Thursday it was building a coalition to
deter Iranian threats while Tehran has warned Trump against
being dragged into a war in the Middle East and said it would
meet any offensive action with a crushing response. (Editing by Lincoln Feast)