GLOBAL MARKETS-Asian stocks fall in the face of growth and trade concerns of Chinese markets | Metals and mines

* MSCI Asia, former Japan, down 0.2%

* European markets open higher

* The pound retains its gains after the draft agreement on future EU-UK relations

* Crude prices continue to dive due to concerns over excess supply

* Japanese markets are closed for holidays

By Andrew Galbraith

SHANGHAI, Nov. 23 (Reuters) – Large losses on Chinese stock markets weighed on Asian equities on Friday. Persistent trade war tensions and weak corporate earnings in Europe added to worries about global growth.

While the US markets were closed until Thanksgiving and Japan on holiday on Friday, the first exchanges were meaningless until the sale in China put a harder time on investors. in shares of the region.

European shares, by contrast, are expected to rise on Friday. Financial investors hope that FTSE London, DAX Frankfurt and CAC Paris progress by 0.3% each.

The broader Asia-Pacific MSCI equity index outside Japan fell 0.23%, while Chinese blue chips fell 2% and the Shanghai Composite lost 2.2% %.

Chinese markets are plunged into an economic slump, while the US-Canada trade war has exacerbated concerns about slowing growth. Few analysts expect a lasting improvement in Chinese equities, although US and Chinese leaders are improving ties at a G20 meeting in Argentina at the end of the month.

At this point, some economists doubt that the G20 talks are making progress.

ING's Prakash Sakpal in Singapore said there was "no promising development" since the start of the trade war.

"There is a lot of rhetoric that pushes things further from any solid consensus that the two countries could meet."

The Seoul Kospi lost 0.6% and Taiwanese shares lost 0.5%. Hong Kong Hang Seng lost 0.6% of its afternoon trade.

Australian stocks maintained their gains, up 0.4%, but recorded their second consecutive weekly loss.

US equity futures showed weakness on Wall Street when trading resumes on Friday. S & P E-mini futures fell 0.5% to 2636.

On Thursday, European stock markets were penalized by disappointing results, revealing new signs that corporate earnings growth is at a global peak.

These profits highlighted the persistent concern of equity investors, trade tensions, the slowdown in global investment and growth that kept the stock markets lagging behind a torrid October. A draft agreement on future relations between Great Britain and the European Union, concluded Thursday night, has done little to ease the mood.

On the foreign exchange market, the pound sterling remained stable, buying 1.2875 dollar after an increase of more than 1% Thursday at the announcement of the draft agreement between Britain and the United Kingdom. European Union, which describes a close post-Brexit relationship. The agreement follows a draft treaty last week setting the conditions for Britain's departure from the EU in March.

But the agreement faces considerable difficulties once it reaches a deeply divided British parliament, which contains radical Eurosceptic factions and fiercely pro-European supporters, as well as various shades of gray between the two.

Indeed, analysts at the National Australia Bank have warned against early celebrations.

"After European leaders must endorse this political declaration alongside the withdrawal agreement at a summit on Sunday, the" meaningful vote "in the UK Parliament is expected to unfold in the second week of December. It would be far too optimistic to declare victory on an agreement at the moment, "they said in a note addressed to customers.

The euro has risen slightly to reach $ 1.1413, as Italian leaders announced that they will intensify the country's deficit next year and resist pressure from the EU authorities to cut its budget, investors favoring conciliatory rather than conflicting comments.

The dollar weakened by 0.08% against the yen at 112.84.

The Chinese yuan fell to 6.9386 for a dollar, with trade concerns weighing. The currency has also been under pressure in recent weeks due to falling Chinese rates, as shorter-term Chinese government bond yields are lower than their US counterparts.

In commodities markets, oil prices reached their lowest level in 2018, as US inventories reached their highest level since December, reinforcing concerns over the global overabundance of oil prices. gross.

US crude fell 2.5% to 53.24 US dollars after hitting less than 5 cents from a low of October 2017 hit earlier in the week. Brent futures reached their lowest level since December 2017, at $ 61.52 per barrel, and were down 1.2% to $ 61.85 per barrel.

The spot gold price was stable at $ 1,227.17 per ounce.