* MSCI Asia-Pacific index down 0.25 pct, Nikkei up 0.65 pct
* Spreadbetters expect European stocks to open mixed
* Fed Powell's Jackson Hole speech eyed for near-term cues
* Dollar buoyant against major peers, hits 2-week high vs yen
* Australia gets new leader, battered Aussie given respite
By Shinichi Saoshiro
TOKYO, Aug 24 (Reuters) - Asian stocks fell on Friday after U.S.-China trade talks ended without progress and market focus shifted to a speech by the Federal Reserve chairman for fresh clues on the direction of U.S. monetary policy.
Spreadbetters expected European stocks to open mixed, with Britain's FTSE .FTSE dipping 0.15 percent, Germany's DAX .GDAXI rising 0.1 percent and France's CAC .FCHI edging up 0.05 percent.
U.S. and Chinese officials ended two days of talks on Thursday with no major breakthrough. At the same time, their trade war escalated with another round of duelling tariffs on $16 billion worth of each country's goods taking effect. broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS shed 0.25 percent. It was still up about 1 percent on the week.
Hong Kong's Hang Seng .HSI fell 0.55 percent and the Shanghai Composite Index .SSEC dropped 0.35 percent.
Australian stocks .AXJO rose 0.15 percent and South Korea's KOSPI .KS11 advanced 0.2 percent. Japan's Nikkei .N225 climbed 0.65 percent, lifted by a weaker yen.
"Global risk sentiment remains somewhat jittery ahead of Fed Chair Powell's speech with U.S.-Sino trade talks failing to yield any immediate progress," strategists at OCBC Bank wrote.
The S&P 500 .SPX shed 0.17 percent overnight to pull back slightly from a record high scaled midweek, with industrial shares sagging after the United States and China imposed a fresh round of trade tariffs on each other.
Shares of industrial giants Caterpillar Inc (NYSE:CAT) CAT.N and Boeing (NYSE:BA) Co BA.N , bellwethers of trade confidence, were among the biggest drags on the Dow .DJI , which lost about 0.3 percent. Caterpillar shares fell 2.0 percent, and Boeing shares fell 0.7 percent.
In immediate focus was the speech by the Fed Chairman Jerome Powell to be given later on Friday at the Jackson Hole, Wyoming, meeting of central bankers.
Where Powell stands on the pace of interest rate hikes will be scrutinised after minutes from the Fed's most recent policy meeting indicated the central bank would tighten monetary policy soon.
"For equities, the key point will be whether Powell indicates that the Fed is poised to hike rates two more times this year. That would fall in line with expectations and not cause much of a stir," said Soichiro Monji, senior economist at Daiwa SB Investments in Tokyo.
"Any mention of recent turbulence in the emerging markets may also provide the risk asset markets with some relief."
U.S. President Donald Trump reiterated his displeasure with the Fed's rate hikes earlier this week and investors waited to see whether Powell would respond to such criticism.
The Fed should raise rates further this year and probably next year as well, despite Trump's opposition to tighter policy, Kansas City Fed President Esther George said in interviews aired on Thursday. Fed President Robert Kaplan also said Trump's comments would not affect the central bank's decision making. dollar index against a basket of six major currencies stood at 95.567 .DXY , holding most of its gains after rising 0.55 percent overnight to snap a six-day losing run.
The greenback extended its overnight surge to touch a two-week high of 111.49 yen JPY= . The euro was 0.15 percent higher at $1.1553 EUR= after retreating 0.5 percent the previous day.
The Australian dollar received some respite after Australian Treasurer Scott Morrison won a ruling party leadership vote, paving the way for him to become the country's next prime minister and ending a week of political uncertainty. Aussie was up 0.4 percent at $0.7277 AUD=D4 . On Thursday, it slumped 1.4 percent as Australian Prime Minister Malcolm Turnbull faced challenges to his leadership.
Onshore Chinese yuan CNY=CFXS slipped 0.2 percent to 6.8916 per dollar, its weakest in a week.
Oil prices edged higher. While the trade conflict between Washington and Beijing darkens the economic outlook, the supply versus demand position in oil markets remains relatively tight -especially because of the looming U.S. sanctions against Iran. O/R
Brent crude futures rose 0.45 percent to $75.07 per barrel LCOc1 , while U.S. crude CLc1 added 0.6 percent to $68.25.
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