GLOBAL MARKETS-Asian shares near 18-month high, bask in trade deal afterglow

(Updates prices throughout, adds European stock futures)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan near 18-mth highs, up nearly 5% this month
* E-mini futures at all-time highs, up 2.7% this month
* Currencies tread water, sterling near 3-week lows

By Swati Pandey
SYDNEY, Dec 23 (Reuters) - Asian markets idled near 18-month
highs on Monday as trading volumes weakened ahead of the
Christmas holiday break, with investors taking profit on gains
made earlier this month.
In early European trades, the pan-region Euro Stoxx 50
futures STXEc1 and German DAX futures FDXc1 rose 0.1% each
while those for London's FTSE FFIc1 inched up a bit.
E-Mini futures for the S&P 500 ESc1 climbed to all-time
highs having put on 2.7% for the month.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS hovered near its highest since June 2018, having
risen 1.4% last week and more than 5% this month. For the final
quarter of the year, it is up nearly 10% so far.
Global stocks were "basking in the afterglow of the U.S.
China trade deal and continued encouraging signs of
stabilisation in the global growth slowdown," said David
Bassanese, Sydney-based chief economist at Betashares.
On Friday, the benchmark S&P 500 extended its run of record
highs to seven straight sessions, its longest streak in more
than two years. All three major U.S. indexes - the S&P 500,
Nasdaq and Dow - notched up gains. .N
"While we're entering 2020 with more hope than last year, as
is always the case, there's never any room for complacency,"
Bassanese added.
Data on Friday showed U.S. growth nudged up in the third
quarter, while there were signs the economy maintained its
moderate pace of expansion as the year ended. Consumer spending
was stronger than previously reported, and there were upgrades
to business spending.
U.S. President Donald Trump gave markets more reasons to
cheer on Saturday when he said the United States and China would
"very shortly" sign their so-called Phase 1 trade pact.
Under the deal, the United States would agree to reduce some
tariffs in exchange for a big jump in Chinese purchases of
American farm products.
Further, China said on Monday it would lower tariffs on
products ranging from frozen pork and avocado to some types of
semiconductors next year as it looks to boost imports amid a
slowing economy and a trade war with the United States.
During Asian hours on Monday, Japan's Nikkei .N225 trod
water after reaching a 14-month top last week. It was ahead by
2.3% for the month so far.
South Korea's market .KS11 was down 0.1% after adding 5.5%
so far in December. Chinese shares eased with the blue-chip
CSI300 .CSI300 down 0.5% while Australian shares ended in the
red.
The only major data this week is the U.S. personal
consumption expenditure (PCE) deflator for November, due on
Friday.
Action was muted in currency markets as well.
The euro EUR= held at $1.1078 after slipping 0.4% last
week.
Sterling GBP= last fetched $1.3011, not far from Friday's
three-week low of $1.2976. It slid 2.6% last week for its worst
weekly showing since October 2017. The safe haven Japanese yen was treading water at 109.40.
JPY=
That left the dollar index .DXY barely changed at 97.667
against six major currencies.
In commodities, Brent crude LCOc1 was off 21 cents at
$65.93 a barrel, while West Texas Intermediate crude CLc1
slipped 24 cents to $60.2 a barrel.
Spot gold XAU= was slightly ahead at $1,480.62 an ounce.

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