In This Article:
* S&P mini futures pare 0.2 pct loss, Asian shares almost flat
* Trump extends tariffs exemption by 1 month for many allies
* Dollar supported by yield advantage, euro hurt by softer data
By Hideyuki Sano
TOKYO, May 1 (Reuters) - U.S. stock futures pared small losses while Australian shares hit seven-week highs on Tuesday after the United States extended the deadline for its steel and aluminium tariffs to take effect.
Still, uncertainty over an expanding trade dispute between the United States and China as well as worries that Washington may abandon a 2015 international nuclear deal with Iran kept investors on edge.
S&P mini futures ticked up 0.1 percent, erasing an earlier loss of 0.2 percent. Japan's Nikkei ticked down 0.1 percent while Australian shares gained 0.6 percent, hitting their highest level since mid-March.
MSCI's dollar-denominated index of Asia-Pacific shares outside Japan was down 0.1 percent though only Australia and New Zealand are open. Many markets in Europe and Latin America will be closed on Tuesday as well.
U.S. shares lost steam late on Monday as worries about rising costs for companies kept investors on edge, despite solid corporate earnings and strong economic data.
Analysts expect S&P500 companies to report 24.6 percent growth in profits in the January-March quarter, according to Thomson Reuters data.
Yet rising U.S. bond yields and commodity prices pointed to higher costs down the road, with concerns about trade frictions and rising tension in the Middle East seen as potentially amplifying the cost challenge.
An earnings announcement due later on Tuesday from Apple , the world's largest company by market capitalisation, is attracting close attention, given speculation the sales of its flagship iPhone X have been sluggish.
"Earnings have been really strong so far. Microsoft and Amazon had a bumper quarter. The only concern has been Apple, which has been said to be lacklustre. Hopefully, unless they come up with downbeat guidance, the market may take it in stride," said Hirokazu Kabeya, chief global strategist at Daiwa Securities.
The market got a little relief when the United States decided to postpone the start date for steel and aluminium tariffs against the European Union, Canada and Mexico to June.
The United States also reached agreements in principle on tariffs with some other countries, including Australia and Brazil.
The news, first reported by the Wall Street Journal, lifted worries the exemptions would expire on Tuesday, easing investors' worst fears.
"Markets are kind of expecting the Trump way of negotiation to continue. So I do not think markets are overly concerned about them at this point," said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management.