* MSCI Asia-Pacific index up 0.1 pct, Nikkei rises 0.4 pct

* Dollar/yen up with funding deal to avert U.S. govt shutdown

* Euro near 5-1/2-mth high after upbeat European inflation data

* Crude slips on oversupply concerns, gold dips as dollar gains

By Shinichi Saoshiro

TOKYO, May 1 (Reuters) - Asian stocks shook off a sluggish start and edged up on Monday, with Japan outperforming on upbeat earnings, while the dollar regained traction as the U.S. government looked likely to avoid a shutdown.

MSCI's broadest index of Asia-Pacific shares outside Japan added 0.1 percent. Japan's Nikkei climbed 0.4 percent, with high-tech blue chips gaining on strong earnings.

Asian shares initially took their cue from Wall Street, which dipped on Friday after data showed the U.S. economy grew at its weakest pace in three years in the first quarter.

The mood brightened slightly, however, on news that U.S. congressional negotiators hammered out a bipartisan agreement on a spending package to keep the federal government funded through Sept. 30, thus averting a government shutdown.

Pointing to a higher open for the main market later in the day, S&P mini futures gained about 0.1 percent while the safe-haven U.S. 10-year Treasury yield rose after three successive days of declines.

Overall reaction was still limited as many markets in Asia and Europe are closed for Labour Day.

"It is hard for markets to make big moves with holidays in so many places today, and people are just waiting for more information to come out," said Harumi Taguchi, principal economist at IHS Markit in Tokyo.

While U.S. consumer spending has almost stalled, a surge in business investment and wage growth suggested activity would regain momentum as the year progresses, limiting Wall Street losses. Moreover, strong earnings have kept the U.S. equity market at or near record levels.

"The main focus of the broader markets this week will be on the United States, with the Fed's May 2-3 policy meeting and the jobs report on Friday," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

"While many of the indicators in the first quarter were weak, the jobs data could confirm that labour market conditions continue to improve and lift the dollar and U.S. yields."

Asian markets were little fazed by China's official manufacturing survey on Sunday which showed growth in the country's factories slowed more than expected in April to a six-month low.

As trading resumed on Monday the safe-haven yen initially rose against the dollar in response to Saturday's missile test by North Korea.