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ECB expected to cut rates amid global economic uncertainty

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Euro Stoxx 50 futures stable, S&P 500 e-minis down 0.1%

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Japan sends negotiator to U.S. for trade talks

By Rocky Swift

TOKYO, June 5 (Reuters) - Shares in Asia crept higher

and the U.S. dollar languished ahead of the European Central

Bank offering its policy outlook for a tumultuous global

economy.

The dollar slid in the previous session after weak U.S. jobs

and services data, with more weighty employment data due on

Friday. Damage to the U.S. economy is becoming more apparent

from President Donald Trump's erratic tariff action, while

bilateral deals remain unrealised.

Canada prepared possible reprisals against the imposition of

new U.S. metals tariffs while the European Union reported

progress in trade talks with Washington. Against that backdrop,

market watchers considered the ECB almost certain to cut policy

interest rates so will pay greater attention to what bank

President Christine Lagarde signals about future decisions.

"There's uncertainty about the guidance the central bank

will deliver given the murky outlook for U.S. trade policy and

global growth," said Kyle Rodda, a senior financial market

analyst at Capital.com. "A failure to deliver sufficiently

dovish guidance could upset the equity markets as well as give

the euro upward trend additional momentum."

Trump's doubling of tariffs on steel and aluminium imports

became effective on Wednesday, hitting Canada and Mexico in

particular. The same day, his administration sought "best

offers" from trading partners to stop other import levies taking

effect in July.

Japan is sending key trade negotiator Ryosei Akaza to the

U.S. on Thursday for another round of talks. Germany's new

chancellor, Friedrich Merz, is also due to head to Washington.

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

was up 0.7% in early trade, whereas Japan's

Nikkei stock index slid 0.2%.

The dollar index, which measures the greenback

against a basket of currencies, was flat at 98.85 after a 0.5%

slide on Wednesday.

The dollar rose 0.1% against the yen to 142.92. The

euro was flat at $1.1416 after a 0.4% gain in the trading

previous session.

Gold pared gains from the previous day while oil slipped

after a build in U.S. inventories and Saudi Arabia's cut to its

July prices for Asian crude buyers.

Spot gold edged 0.1% lower to $3,372.7 per ounce.

U.S. crude dipped 0.2% to $62.75 a barrel.

The pan-region Euro Stoxx 50 futures were little

changed while U.S. stock futures, the S&P 500 e-minis,

were down 0.1%.