Asian shares veer between gains and losses before key China data

SHANGHAI (Reuters) – Asian shares shuttled between small losses and gains on Friday as investors awaited China trade, lending and growth data, and as worries over Sino-U.S. trade tensions deflated optimism rooted in expectations of a Federal Reserve rate cut this month.

FILE PHOTO: Passerbys walk past an electric screen showing Asian markets indices outside a brokerage in Tokyo, Japan, July 1, 2019. REUTERS/Issei Kato

But while an anticipated Fed cut did little to spur gains in Asian markets, European equities were expected to open higher.

Pan-region Euro Stoxx 50 futures STXEc1 were up 0.29% at 3,500, German DAX futures FDXc1 were up 0.36% at 12,367 and FTSE futures FFIc1 were up 0.34% at 7,475. Financial spreadbetters expect Paris’ CAC .FCHI to open 0.38% higher.

Later on Friday, China will release June trade data, with analysts expecting exports to have fallen as weakening global demand and a sharp hike in U.S. tariffs took a heavier toll on the world’s largest trading nation.

China is also due to release lending data on Friday, while second-quarter GDP figures are scheduled for Monday. The world’s second-largest economy is expected to have slowed to its weakest pace in at least 27 years, raising hopes for more stimulus to fend off a sharper slowdown.

“You’ve got key data coming out, and I don’t see why anyone would want to take a position until you’ve got that data,” said Michael Every, head of Asia-Pacific financial markets research at Rabobank in Hong Kong.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS, which moved in a narrow range through the day, was flat in the afternoon. Chinese shares rose, with the CSI300 .CSI300 adding 0.85%.

Australian shares dipped 0.3% and Japan’s Nikkei stock index .N225 started the day with small losses, but

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