In This Article:
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Nikkei nudges up 0.3 pct, most markets flat
* President Trump gives state of the Union at 0200 GMT
* Dollar firm as sterling takes a dive amid Brexit unease
* OPEC seeks oil pact with Russia-led group - WSJ
By Wayne Cole
SYDNEY, Feb 6 (Reuters) - Asian shares started cautiously on Wednesday as investors waited to see if U.S. President Donald Trump drops any hints of progress on tariffs in his State of the Union speech.
MSCI's broadest index of Asia-Pacific shares outside Japan was flat with China and several other markets in the region still closed for the Lunar New Year holiday. Japan's Nikkei edged up 0.3 percent, while E-Mini futures for the S&P 500 barely budged.
Dow Jones reported on Tuesday that U.S. Treasury Secretary Steve Mnuchin and Trade Representative Robert Lighthizer plan to hold talks in Beijing early next week, citing an unidentified senior administration official.
Trump was expected to challenge Democrats to approve funding for his long-sought border wall but stopped short of declaring a national emergency over it, at least for now. The speech starts at 2100 ET (0200 GMT).
Investors are also interested in any detail on a long-touted plan for infrastructure spending, which has yet to get a single road or bridge built.
"Trump is likely to tout progress on the trade front, though many key structural issues are likely still outstanding," said Richard Franulovich, Westpac's head of FX strategy.
"An infrastructure plan is likely to be resuscitated again. A Democrat led-Congress will likely be more sympathetic, which would be a positive for risk appetite."
Wall Street had already racked up gains courtesy of strong corporate results from Europe and the U.S., including a blockbuster from Estée Lauder Cos Inc.
The Dow ended Tuesday up 0.68 percent, while the S&P 500 gained 0.47 percent and the Nasdaq 0.74 percent.
Treasury bonds also bounced, helped by data showing a surprisingly soft U.S. service sector index of 56.7, with new orders falling to a one-year low.
A LENGTHY PAUSE
The Federal Reserve should leave interest rates where they are until the U.S. economic outlook is clearer, Dallas Fed President Robert Kaplan said on Tuesday, a process that could take several more months.
The dollar held up well thanks in part to a retreat in sterling, which hit two-week lows at $1.2922 after poor survey data and uncertainty about Brexit talks pushed it below a key market level.
Against a basket of currencies, the dollar was firm at 96.064 and well above last week's low of 95.162. It was steady on the yen at 109.94.