In This Article:
talks awaited@
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Ex-Japan Asia MSCI hits highest since early Sept
* U.S. bond yields at lowest since early 2018
* Pound under pressure, EU demands UK decision by Apr 12
* Spreadbetters expect European shares to open mixed
TOKYO, March 22 (Reuters) - Asian shares held near 6-1/2-month highs on Friday after upbeat U.S. data and optimism in the tech sector helped calm some of the jitters sparked by the Federal Reserve's cautious outlook on the world's biggest economy.
Markets showed some signs of fatigue during the afternoon session as focus turned to a fresh round of Sino-U.S. trade talks.
The opening in Europe is also expected to be subdued, with spreadbetters predicting Britains FTSE to slip 0.26 percent, Germanys DAX to start flat and Frances CAC to edge up 0.22 percent.
MSCI's broadest index of Asia-Pacific shares outside Japan was nearly flat, trimming earlier gains, but still not far off 6-1/2-month highs reached earlier in the day.
The info tech sector rose 0.8 percent, while Japan's Nikkei average added 0.1 percent.
Many markets took on a more cautious tone after the early session gains, likely as they awaited another round of Sino-U.S. talks. China's Shanghai Composite, the blue-chip CSI 300 and Hong Kong's Hang Seng dropped between 0.1 and 0.4 percent each.
Bloomberg reported on Friday that U.S. officials downplayed the prospect of an imminent trade deal with Beijing, just as a U.S. trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin is set to visit China on March 28-29.
On Wall Street, the S&P 500 gained 1.09 percent while the Nasdaq Composite rallied 1.42 percent, both hitting five-month highs.
Apple Inc led the tech sector's advance, rising 3.7 percent, ahead of the company's expected streaming service debut next week.
The Philadelphia SE Semiconductor Index soared 3.5 percent, coming within a striking distance of its all-time high marked about a year ago.
"I'd think optimism in the tech sector is the biggest driver now. It reflects expectations that the U.S. and China will eventually reach a trade deal," said Soichiro Monji, senior economist at Daiwa SB Investments.
Thursday's U.S. economic data was also upbeat as initial claims for jobless benefits fell more than expected and mid-Atlantic factory activity rebounded sharply.
The figures mollified worries about the U.S. economic outlook after the Fed on Wednesday surprised investors by adopting a sharp dovish stance, anticipating no further interest rate hikes this year and ending its balance sheet rolloffs.