(Updates prices at 0530 GMT)

By Stella Qiu

SYDNEY, July 16 (Reuters) - Asian shares outside Japan

edged lower on Tuesday as investors pondered what a Trump

victory would mean for China, while the yen resumed its slide,

prompting fresh warnings from officials after last week's

suspected intervention.

Europe is set to open lower, with EUROSTOXX 50 futures

down 0.3%. S&P 500 futures gained 0.2% and

Nasdaq futures firmed 0.3% after dovish Fed comments

fuelled bets of more U.S. rate cuts this year, lifting Wall

Street.

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

fell 0.3%, extending Monday's 0.3% decline.

Japan returned from a public holiday and the Nikkei index

rose 0.3%.

Overnight, investors continued to digest the fallout from

the attempted assassination on Saturday of former U.S. President

Donald Trump, who nominated J.D. Vance on Monday as his vice

presidential running mate.

Opinion polls show a close race between Trump and President

Joe Biden, though Trump leads in several swing states that are

likely to decide the election.

The Dow Jones hit a record closing high, thanks to energy

and banking shares. Bitcoin jumped, gold climbed towards a

record high and the yield curve steepened as investors favoured

so called Trump-victory trades.

"J.D. Vance sits in the camp of taking China on head-first

in a bid for improved trade deals for the U.S., and this will

only weigh on sentiment towards China," said Chris Weston, head

of research at Pepperstone.

The Shanghai Composite index fell 0.1%, while Hong

Kong's Hang Seng index lost 1.4%, having already dropped

1.5% the day before as soft economic data from China heightened

the risk that Beijing could miss its 5% growth target this year,

barring forceful stimulus.

Both Taiwanese and South Korean shares edged up

0.2%.

Fed Chair Jerome Powell said on Monday the three U.S.

inflation readings over the second quarter do "add somewhat to

confidence" that inflation is returning to the Fed's target in a

sustainable fashion.

Markets have now fully priced in a quarter-point rate cut

from the Fed in September, with a total easing of 68 basis

points (bps) expected by the end of the year.

That kept a lid on the U.S. dollar overnight, although it

was 0.1% firmer on Tuesday against a basket of major

currencies, thanks to the renewed yen weakness.

The yen lost 0.4% to 158.67 per dollar,

struggling to hold on to the gains after Tokyo's suspected

intervention last week disrupted the popular carry trade.

It also drew fresh warnings from Japanese officials that the

government stands ready to take all possible measures to counter

excessively volatile currency moves.

"I actually have bought dollars here. I think the U.S.

dollar has probably bottomed for now," said Tony Sycamore,

analyst at IG. "We've had the reaction out of the soft CPI data

and the dovish Powell. And I think the risks to the dollar are

to the upside here."

"The idea the Trump administration is more likely to get

to the White House and increase tariffs on China, that's not a

good thing at all for Chinese stocks. Put that together with the

higher U.S. dollar and higher yields, I think it's going to be a

tough time for Hang Seng."

Long-term Treasuries found their footing in Asia, with the

10-year yield off 2 bps at 4.2060%, having risen 4

bps overnight.

Gold rose 0.3% to $2,428.67 an ounce, nearing a

record high.

Oil prices ticked down on worries that slowing Chinese

economy would crimp demand.

Brent futures fell 0.3% to $84.63 a barrel, while

U.S. West Texas Intermediate (WTI) crude slipped 0.3% to

$81.64.