REFILE-GLOBAL MARKETS-Asian shares up as 'phase one' trade deal boosts confidence

(Corrects typo in second bullet point)
* MSCI Asia ex-Japan +0.27%
* Chinese, Japanese shares fall on profit taking, investor
caution
* Investors welcome trade deal but await details
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Andrew Galbraith
SHANGHAI, Dec 16 (Reuters) - Asian shares moved higher on
Monday as investors welcomed a trade agreement between Beijing
and Washington over the weekend, but enthusiasm was capped by
lingering scepticism about the deal and ongoing relations
between China and the United States.
U.S. Trade Representative Robert Lighthizer on Sunday said a
deal was "totally done", notwithstanding some needed revisions,
and would nearly double U.S. exports to China over the next two
years. That helped push the MSCI's broadest index of Asia-Pacific
shares outside Japan .MIAPJ0000PUS , which had touched its
highest level since April 24 on Friday, up 0.27%.
Australia's S&P/ASX 200 .AXJO led the way as it jumped
1.24%, while shares in Taiwan .TWII and South Korea .KS11
added about 0.1%.
But Chinese investors had a more tepid reaction, pulling the
benchmark Shanghai Composite index .SSEC down 0.16% as
investors took profits following a 1.8% gain on Friday.
The small decline came despite data showing the country's
industrial output growth and retail sales jumped more than
expected in November. Japan's Nikkei 225 .N225 also succumbed to profit-taking,
easing 0.14% after surging 2.55% to a 14-month closing high on
Friday.
The "phase one" agreement suspended a threatened round of
U.S. tariffs on a $160 billion list of Chinese imports that was
scheduled to take effect on Sunday. The United States also
agreed to halve the tariff rate, to 7.5%, on $120 billion worth
of Chinese goods.
Ryan Felsman, senior economist at CommSec in Sydney, said
the deal was a positive factor in the market, but investors
awaited further details. The reduction in U.S. tariffs may have
also disappointed some investors looking for more aggressive
action, he added.
"Certainly there were expectations perhaps that the rollback
would be more significant than just 50%," he said.
The 17-month-old trade dispute has between the world's two
largest economies has roiled financial markets and taken a toll
on world economic growth.
"The announcement is a step in the right direction for the
two nations, but does not completely reduce the chances of trade
disputes between the two nations in the year," ANZ analysts said
in a morning note.
U.S. shares had struck a cautious note on Friday, paring
initial gains to end barely higher as weary investors awaited
signs of a concrete deal.
However, the news of a deal was still enough to send the S&P
500 .SPX to a record closing high of 3,168.8, up 0.01%. The
Nasdaq Composite .IXIC added 0.2% to end at 8,734.88, also a
record, and the Dow Jones Industrial Average .DJI rose 0.01%
to 28,135.38.
U.S. Treasury yields moved higher on Monday, reflecting a
more positive mood. Benchmark 10-year Treasury notes US10YT=RR
rose to 1.84% compared with its U.S. close of 1.821% on Friday
and the two-year yield US2YT=RR touched 1.6201% compared with
a U.S. close of 1.604%.
The dollar was flat against the yen at 109.36 JPY= and the
euro was up 0.07% at $1.1128. Sterling, which jumped last week
after the UK general election produced a strong Conservative
majority, gained 0.29% to $1.3363.
The dollar index .DXY , which tracks the greenback against
a basket of six major rivals, was down 0.07% at 97.108.
Oil prices, which had risen on Friday following the deal,
cooled in early Asian trade on Monday. Brent crude shed 0.29% to
$65.03 per barrel, and U.S. West Texas Intermediate crude CLc1
was down 0.33% at $59.87 per barrel.
Spot gold prices fell 0.09% XAU= , with the precious metal
trading hands at $1,474.19 per ounce. GOL/