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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Wall St futures skid 0.4% after Trump warns on EU, Canada

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Dollar up 0.3% on Canadian currency, euro off 0.2%

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Asian shares wobble, Nikkei off 0.1%

(Updates prices to include China open)

By Stella Qiu

SYDNEY, July 11 (Reuters) - U.S. and European stock

futures dipped in Asia on Friday after President Donald Trump

stepped up tariff threats against Europe and Canada, restraining

an early rally in regional share markets.

The dollar gained on the euro and the Canadian currency as

Trump issued a letter late on Thursday that a 35% tariff rate on

all imports from Canada would apply from August 1, adding the

European Union would receive a letter by Friday.

The U.S. president, whose global wave of tariffs has upended

businesses and policymaking, floated a blanket 15% or 20% tariff

rate on other countries, a step up from the current 10% baseline

rate.

Both Nasdaq futures and S&P 500 futures fell

about 0.4%. EUROSTOXX 50 futures also dropped 0.4%.

The euro slipped 0.2% to $1.1676, while the dollar

gained 0.3% to C$1.3695.

Earlier in the week, Trump pushed back his tariff deadline

of July 9 to August 1 for many trading partners to allow more

time for negotiations, but broadened his trade war, setting new

rates for a number of countries, including allies Japan and

South Korea, along with a 50% tariff on copper.

Joseph Capurso, head of international economics at the

Commonwealth Bank of Australia, said the tariff rate of 35% on

Canada is not as bad as feared because most of the imports are

still subject to exemptions under the United

States-Mexico-Canada Agreement (USMCA).

"Now the tariff rate on imports from the EU... That's

what we don't know as yet... The potential escalation between

the EU and the US is a big deal for financial markets," said

Capurso.

"If you get something similar to (the U.S.-China trade war

in April), that's going to be very destabilising."

Overnight, Wall Street indexes rose modestly but posted

record closing highs as chip giant Nvidia ( NVDA ) made history

with a closing market valuation above $4 trillion.

The MSCI's broadest index of Asia-Pacific shares outside

Japan wobbled but was last up 0.5% on Friday.

That brought the weekly gain to 0.7%.

Tokyo's Nikkei reversed earlier gains to be off

0.1%, and is set for a weekly drop of 0.6%. It was dragged lower

by an almost 7% drop in shares of Uniqlo owner Fast Retailing ( FRCOF )

after it warned of a significant tariff impact.

China's blue chips rose 0.5%, while Hong Kong's

Hang Seng index rallied 1.3%.

Investors are gearing up for second-quarter U.S.

corporate earnings next week to gauge the impact of Trump's

trade war launched with his "reciprocal" tariff announcement on

April 2. JPMorgan Chase ( JPM ) is due to release results on

Tuesday, essentially kicking off the reporting period.

In Treasury markets, moves were muted in Asia. Benchmark

10-year U.S. Treasury yields rose 1 basis point to

4.3577%, having edged up a tiny bit overnight after data showed

jobless claims unexpectedly fell last week.

Oil prices rose after losing 2% overnight. Brent crude

futures gained 0.6% to $69.06 a barrel, having lost 2.2%

a day earlier.

U.S. West Texas Intermediate crude was up 0.7% at

$67.05 a barrel.

Spot gold rose 0.2% to $3,329 an ounce.