* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* China data misses expectations
* Asian shares edge lower in cautious trade
* Treasury yields remain high after 30-year auction
By Stanley White and Lawrence Delevingne
TOKYO/BOSTON, Aug 14 (Reuters) - Asian shares fell on Friday and European stocks were set to open lower after lacklustre Chinese economic data and worries about a delay in U.S. fiscal stimulus discouraged some investors from taking on risk.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.14%, although shares in Japan .N225 rose 0.11%.
South Korean stocks .KS11 fell 1.28% after authorities reported the largest number of new coronavirus cases since March. shares .CSI300 rose 0.18% in choppy trade, but a slower-than-expected rise in industrial production and a surprise fall in retail sales weighed on investor sentiment.
E-mini futures for the S&P 500 EScv1 rose 0.19%.
Euro Stoxx 50 futures STXEc1 were down 0.27%, German DAX futures FDXc1 fell 0.22%, and FTSE futures FFIc1 fell 0.06%.
Yields on U.S. Treasuries remained elevated after an auction of 30-year bonds on Thursday was met with weak demand.
Further equity gains are likely to be limited as investors await progress in negotiations over U.S. economic stimulus, which is necessary to prevent a nascent recovery in the world's largest economy from sliding into reverse.
The S&P 500 .SPX ended slightly lower on Thursday after briefly trading above its record closing high level for a second day as doubts about U.S. stimulus measures took hold.
"Many say that the best treatment for altitude sickness is to stop and rest where you are," Rodrigo Catril, Senior FX Strategist at National Australia Bank in Sydney, wrote in a note about the slight pullback in U.S. stocks and government bonds.
The mood was cautious after Chinese retail sales unexpectedly fell in July, suggesting domestic demand is still struggling after the coronavirus outbreak. traders stuck to the sidelines before a meeting between U.S. and Chinese officials about their Phase 1 trade deal on Saturday. gold XAU= held steady at $1,952.51, close to a record high set last week in another sign of cautious sentiment.
Data on Thursday showed the number of Americans seeking unemployment benefits dropped below one million for the first time since the start of the COVID-19 pandemic, but this was not enough to change economists' views that the jobs market is faltering. on 30-year U.S. Treasuries US30YT=RR stood at 1.4225% on Friday, close to a five-week high after the government sold a record amount of 30-year bonds to weak demand on Thursday.
Benchmark 10-year Treasury yields traded at 0.7126%, close to a seven-week high hit on Thursday. yields broadly supported the U.S. dollar, which held steady at 106.90 yen JPY= and at $1.1812 against the euro EUR=D3 .
Elsewhere, the Australian dollar AUD=D3 edged lower to $0.7147 as the weak Chinese data suggested less demand for Australian commodity exports.
U.S. crude CLc1 rose 0.31% to $42.37 per barrel. Brent LCOc1 edged 0.33% higher to $45.11 a barrel, but further gains may be limited by worries about weak global energy demand.
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