* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Cautious welcome to news of new Sino-U.S. trade meetings
* Nasdaq futures dip as DoJ investigates digital giants
* Dollar firm, euro pressured ahead of ECB policy meeting
* Oil gains on inventory draw, Middle East tensions
By Wayne Cole
SYDNEY, July 24 (Reuters) - Asian shares on Wednesday gave a guarded welcome to hints of progress in the Sino-U.S. trade saga, while the dollar hit two-month highs on the euro as investors wagered on a dovish outcome from the European Central Bank's coming policy meeting.
Sentiment had been helped by a Bloomberg report that U.S. Trade Representative Robert Lighthizer would travel to Shanghai next week for meetings with Chinese officials. House economic adviser Larry Kudlow on Tuesday called it a good sign and said he expected Beijing to start buying U.S. agriculture products soon. Nikkei .N225 added 0.5%, while Australian stocks .AXJO rose 0.8% to 12-year highs.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 0.4% and Chinese blue chips .CSI300 climbed 1.2%.
Not so welcome was news the U.S. Justice Department was opening an antitrust investigation of major digital tech firms and possible anticompetitive practices. DoJ cited concerns about "search, social media, and some retail services online" -- an apparent reference to Alphabet Inc GOOGL.O , Amazon.com Inc AMZN.O and Facebook Inc FB.O .
Facebook reports results on Wednesday and Amazon and Alphabet on Thursday.
Nasdaq futures NQc1 fell 0.2% in Asian trade, while E-Mini futures for the S&P 500 ESc1 eased 0.1%.
The news took a little of the gloss off a solid overnight session for Wall Street, where upbeat quarterly reports from Coca-Cola (NYSE:KO) and United Technologies (NYSE:UTX) helped ease some concerns about earnings. .N
The Dow .DJI had ended Tuesday up 0.65%, while the S&P 500 .SPX gained 0.68% and the Nasdaq .IXIC 0.58%.
Stocks are just a whisker away from all-time highs buoyed by expectations of a wave of policy stimulus by global central banks and a resulting sharp decline in bond yields.
The ECB is thought likely to at least offer a nod to easier policy at its meeting on Thursday. FEDWATCH remain 100% priced for a rate cut of 25 basis points from the Federal Reserve next week, and even imply an 18% chance of 50 basis points.
EURO BREAKS DOWN
The prospect of wide scale central bank largesse helped take the sting out of the IMF's latest downgrade to its global growth forecasts. yields on two-year Treasuries US2YT=TWEB edged up to 1.837% overnight, they remain far below the cash rate and down 66 basis points for the year so far.
In currencies, the dollar got a hand up from a deal to end the U.S. budget impasse, while the euro suffered a bout of nerves in case the ECB takes a more dovish turn.
The single currency was down near two-month lows at $1.1144 EUR= , having shed 0.5% overnight, and hit a near seven-month trough on the yen at 120.45 EURJPY= .
The dollar nudged up on the yen to 108.23 JPY= , but stayed confined within recent well-worn ranges. Against a basket of currencies, the dollar firmed to a five-week top at 97.742 .DXY .
Sterling loitered at $1.2433 GBP= having fallen for three sessions in a row as the outlook on Brexit got ever murkier.
Boris Johnson is set to become Britain's new prime minister later on Wednesday, but investors are no clearer on whether he would lead the country to a no-deal exit or find a compromise.
"His grip on power will be weak, given the status of a minority government," noted analysts at NAB.
"In our view, Johnson's desire to push for Brexit, deal or no deal, increases the chance of an early general election and some possibly nasty GBP outcomes."
Gold steadied at $1,421.76 per ounce XAU= , though it was still short of last week's peak at $1,452.60.
Oil prices firmed after an industry group reported a surprisingly large drop in U.S. inventories, while the U.S. Navy said it may have downed a second Iranian drone last week. O/R
Brent crude LCOc1 futures added 18 cents to $64.01, while U.S. crude CLc1 rose 24 cents to $57.01 a barrel.
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