In This Article:
* Ex-Japan Asia MSCI up 0.16%, Nikkei gains 0.42%
* S&P 500 near record peak hit in late July
* Euro, bonds lose steam on profit-taking after ECB
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Hideyuki Sano
TOKYO, Sept 13 (Reuters) - Asian stocks advanced on Friday as hints of progress in the U.S.-China trade dispute and aggressive stimulus from the European Central Bank helped to counter worries about a global economic slowdown.
MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.2%, while Japan's Nikkei rose 0.4%.
Sentiment was also supported by U.S. President Donald Trump's announcement that his administration would unveil a tax overhaul plan aimed at middle-income households next year.
"Risk assets should find further support from accommodative policies, which are set to remain in vogue for some time, and not just in Europe as seen in the global easing trend," said Esty Dwek, head of global market strategy at Natixis.
"Nonetheless, we believe that trade uncertainty and growth concerns will not vanish, so any reprieve on either subject will be welcome. We also believe that some earnings growth will be needed for equities to grind higher," she said.
Although conflicting reports on Thursday about whether Trump administration officials had considered offering a limited trade deal to China made U.S. markets choppy, investors overall were sticking to hopes of more progress in upcoming talks.
The United States on Thursday welcomed China's renewed purchases of U.S. farm goods while maintaining the threat of U.S. tariff hikes as the world's two largest economies prepared the ground for talks aimed at breaking the logjam in their trade war.
Trump said he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact, even as he said an "easy" agreement would not be possible.
Most economists in a new Reuters poll believed the trade dispute will worsen or at best stay the same over the coming year.
The U.S. S&P 500 closed within striking distance of its all-time closing high, rising 0.29% to 3,009.57, near record closing high of 3,024.50 marked in late July.
Philadelphia semiconductor shares index hit an all-time high while MSCI ACWI also came near this year's high after seven straight days of gains by Thursday.
The European Central Bank delivered bigger-than-expected stimulus, cutting interest rates by 0.10 percentage point to minus 0.50 percent, promising that rates would stay low for longer and restarting bond purchases of 20 billion euros a month from November.