By Shinichi Saoshiro
TOKYO (Reuters) - Asian stocks edged up on Friday as investors kept a cautious watch on developments in U.S.-China trade negotiations, while the dollar was perched near a five-month peak against a basket of currencies thanks to the benchmark U.S. Treasury yield topping a seven-year high.
Japan's Nikkei <.N225> rose 0.2 percent, South Korea's KOSPI <.KS11> was up 0.25 percent and Australian stocks <.AXJO> edged up 0.05 percent.
But helping ease some of the tension, Beijing has offered President Trump a package of proposed purchases of American goods and other measures aimed at reducing the U.S. trade deficit with China by some $200 billion a year, U.S. officials familiar with the proposal said.
A second round of talks between senior Trump administration officials and their Chinese counterparts started on Thursday, focused on cutting China's U.S. trade surplus and improving intellectual property protections.
"China should be well accustomed to Trump's ways by now. Judging from how the talks are proceeding so far, there is a greater chance of the negotiations ending in some sort of a compromise instead of falling through, and such an outcome would bode well for risk sentiment," he said.
In currencies, the dollar index against a basket of six major currencies <.DXY> was steady at 93.482 after rising to a five-month peak of 93.632 on Thursday.
The index has gained about 1 percent this week, buoyed by a surge in Treasury yields.
The euro was up 0.05 percent at $1.1800
The dollar extended an overnight rally and rose to 110.870 yen
In commodities, Brent crude futures stood little changed at $79.42 a barrel
Brent has risen 3 percent this week and headed for the sixth week of gains.
A rapid slide in oil supply from Venezuela, concern that U.S. sanctions will disrupt exports from Iran, and falling global inventories have all combined to push oil prices up nearly 20 percent in 2018. [O/R]
The 10-year U.S. Treasury note yield
Inflation concerns, strong U.S. economic indicators and worries over increasing debt supply have pushed Treasury yields higher this week.
(Editing by Shri Navaratnam)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)