GLOBAL MARKETS-Asia set to surge on trade hopes, pound jumps on exit polls

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Stg surges as exit polls show Tories with majority
* Nikkei futures up sharply on reports of Sino-US trade deal
* Safe-haven bonds and the yen fall away

By Wayne Cole
SYDNEY, Dec 13 (Reuters) - Asian share markets were looking
to steam higher on Friday amid reports a last-gasp trade deal
had been struck that would avert new U.S. tariffs on China,
while Prime Minister Boris Johnson's Conservative Party looked
to have won a clear majority in the UK elections.
Sterling surged 2.3% in early Asian trade to $1.3467
GBP=D3 to hit its highest since mid-2018, and reached levels
on the euro not visited since mid-2016.
A wave of trade relief overnight had already lifted Wall
Street to record highs while hammering safe-haven sovereign
bonds and the Japanese yen.
Exit polls suggesting the ruling right-wing Conservatives
could gain a commanding 368 seats in Britain's Parliament seemed
to settle another uncertainty and added to the cheer.
Early Friday, Nikkei futures NKc1 were up 1.4% and
pointing to a similar gain for the cash index .N225 . E-Mini
futures for the S&P 500 ESc1 climbed 0.8%.
Sentiment had soared on reports the United States has
reached a "phase-one" trade deal in principle with China, and
President Donald Trump had signed off on it. Wall Street celebrated the news with record highs. The Dow
.DJI ended Thursday up 0.79%, while the S&P 500 .SPX gained
0.86% and the Nasdaq .IXIC 0.73%.
Bonds sold off sending yields on U.S. 10-year Treasuries
US10YT=RR up 10 basis points to 1.89%.
Other safe harbours also took a beating, with the yen
sliding across the board. The dollar jumped further to 109.49
yen JPY= having risen 0.7% overnight.
The dollar fared less well elsewhere as the pound and the
euro both benefited from relief over the UK exit polls. The euro
added 0.4% to $1.1166 EUR= , while the dollar dipped on a
basket of currencies to 96.911 .DXY .
The dollar also lost out to the Chinese yuan to hit an
18-week low as any truce would be a boon for the export-heavy
economy. The dollar was last at 6.9432 yuan CNH= having shed a
steep 1.2% overnight.
Christine Lagarde had struck an upbeat tone on the economy
in her first news conference as head of the European Central
Bank on Thursday and promised a new style of leadership as she
outlined a sweeping one-year review of the bank's workings.
Spot gold eased to $1,469.52 per ounce XAU= amid the
general the shift from safe havens.
Oil prices rallied on hopes a trade deal would support
global growth and thus demand. O/R
Brent crude LCOc1 futures rose 64 cents to $64.36, while
U.S. crude CLc1 added 46 cents to $59.22 a barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Asia stock markets https://tmsnrt.rs/2zpUAr4
Asia-Pacific valuations https://tmsnrt.rs/2Dr2BQA
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Editing by Lisa Shumaker)