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Asia stocks cautious on trade talks; euro under pressure

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SYDNEY -- Asian shares nudged higher on Wednesday amid hints of progress in the Sino-US trade saga, while the dollar hit two-month highs on the euro as investors wagered on a dovish outcome from the E

uropean Central Bank's coming policy meeting.

Japan's Nikkei added 0.4 percent in early trade, while Australian stocks rose 0.6 percent. MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.04 percent. The news took a little of the gloss off a solid overnight session for Wall Street, where upbeat quarterly reports from Coca-Cola and United Technologies helped ease some concerns about earnings.

While yields on two-year Treasuries edged up to 1.837 percent overnight, they remain far below the cash rate and down 66 basis points for the year so far. The dollar nudged up on the yen to 108.23, but stayed confined within recent well-worn ranges. Against a basket of currencies, the dollar firmed to a five-week top at 97.742 .

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