In This Article:
* MSCI Asia-Pacific index flat, Nikkei rises 0.35 pct
* Spreadbetters expect European stocks to open mixed
* Beijing offers Trump package in trade talks
* Dollar/yen hits near 4-mth high with US yields at 7-yr peak
* Crude dips back from 2014 high, still up 3 pct for the week
By Shinichi Saoshiro
TOKYO, May 18 (Reuters) - Asian stocks were steady on Friday amid caution over developments in U.S.-China trade negotiations, while the dollar perched near a five-month peak after the benchmark U.S. Treasury yield hit its highest in seven years.
Spreadbetters expected European stocks to open mixed, with Britain's FTSE dipping 0.1 percent, Germany's DAX rising 0.13 percent and France's CAC little changed.
MSCI's broadest index of Asia-Pacific shares outside Japan was little changed. The index was headed for a 1 percent loss this week.
Hong Kong's Hang Seng rose 0.17 percent and Shanghai climbed 0.3 percent as some investors bet Beijing and Washington will reach a deal in the latest round of trade talks.
Japan's Nikkei rose 0.35 percent, South Korea's KOSPI was up 0.3 percent and Australian stocks dipped 0.2 percent.
Wall Street ended slightly lower on Thursday as investors grappled with U.S.-China trade tensions after U.S. President Donald Trump said that China "has become very spoiled on trade".
But helping ease some of the tension, Beijing has offered Trump a package of proposed purchases of American goods and other measures aimed at reducing the U.S. trade deficit with China by some $200 billion a year, U.S. officials familiar with the proposal said.
A second round of talks between senior Trump administration officials and their Chinese counterparts started on Thursday, focused on cutting China's U.S. trade surplus and improving intellectual property protections.
"President Trump does not do the actual trade negotiations, which are done by officials from both sides," said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.
"China should be well accustomed to Trump's ways by now. Judging from how the talks are proceeding so far, there is a greater chance of the negotiations ending in some sort of a compromise instead of falling through, and such an outcome would bode well for risk sentiment," he said.
In currencies, the dollar index against a basket of six major currencies was steady at 93.471 after rising to a five-month peak of 93.632 on Thursday.
The index has gained about 1 percent this week, buoyed by the surge in U.S. Treasury yields, with the 10-year U.S. Treasury note yield hitting a seven-year peak of 3.128 percent.