GLOBAL MARKETS-Asian shares slide as Sino-U.S. spat on Hong Kong clouds trade deal outlook

* U.S. stock futures fall 0.2%, Asia shares down
* Trump seen signing HK bills, looks set to anger Beijing
* Trade deal seen delayed into next year - sources
* U.S. bond yield, yuan at 3-week low
* Asian stock markets: https://tmsnrt.rs/2zpUAr4

By Hideyuki Sano
TOKYO, Nov 21 (Reuters) - Global shares slid on Thursday as
a fresh row between Washington and Beijing over U.S. bills on
Hong Kong could complicate their trade negotiation and delay a
"phase one" deal that investors had initially hoped to be inked
by now.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS fell 0.16% while Japan's Nikkei .N225 dropped
0.25%.
U.S. S&P500 futures ESc1 dropped 0.2% in early Asian
trade, a day after MSCI's broadest gauge of world stocks fell
0.4%, the biggest fall since early October.
On Wall Street, all three major indexes fell, with the S&P
500 .SPX losing 0.38%.
The U.S. House of Representatives on Wednesday passed two
bills intended to support protesters in Hong Kong and send a
warning to China about human rights. The legislation, which has angered Beijing, has been sent to
the White House for President Donald Trump to sign or veto amid
delicate trade talks with Beijing.
Trump is expected to sign the legislation, a person familiar
with the matter said on Wednesday. Even if he vetoes, that would be difficult to sustain given
that the measures passed both the Republican-controlled Senate
and Democratic-controlled House with almost no objections.
"China will surely take this as an interference into its
domestic affairs and is likely to think it will no longer need
to make concessions on trade," said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
Trade experts and people close to the White House said
completion of a "phase one" U.S.-China trade deal could slide
into next year, as Beijing presses for more extensive tariff
rollbacks, and the Trump administration counters with heightened
demands of its own. Trump said on Oct. 11 that deal could take as long as five
weeks, and investors had initially expected a deal by
mid-November.
Asked Wednesday about the status of the China deal, Trump
told reporters in Texas: "I don't think they're stepping up to
the level that I want."
Trade jitters sent the 10-year U.S. Treasuries yield down to
1.747% US10YT=RR , near its lowest levels in three weeks and
down more than 20 basis points from a Nov. 7 peak of 1.973%, a
three-month high.
Similarly in the currency market the yuan hit a three-week
low of 7.05 per dollar in offshore trade on Wednesday and last
stood at 7.045 yuan per dollar CNH= , down about 0.09% in early
Asian trade.
The dollar slipped against the yen to 108.46 JPY= ,
compared to this week's high of 109.07 touched on Monday, while
safe-haven gold edged up 0.18% to $1,473.6 per ounce XAU= .
The euro was little changed at $1.1075 EUR= .
The minutes from the Federal Reserve's previous policy
meeting offered little guidance on what would cause policymakers
to change their minds on the outlook after an increasingly
divided Fed decided to hit pause in its easing cycle.
Oil prices held firm having surged more than 2% on Wednesday
after a better-than-expected U.S. crude inventories report and
as Russia said it would continue its cooperation with OPEC to
keep the market balanced.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were
down 0.18% at $56.91 per barrel in early Thursday trade.

(Editing by Stephen Coates)