(Updated at 0902 GMT)

By Yoruk Bahceli and Tom Westbrook

July 23 (Reuters) - World markets steadied on Tuesday as

investors looked beyond Joe Biden's exit from the U.S.

presidential race, turning their focus to corporate earnings and

economic data.

Biden's exit from the race has cast some doubt over a

Republican victory under Donald Trump and could see investors

unwind trades betting that such a win would add to U.S. fiscal

and inflationary pressures.

Vice President Kamala Harris will campaign in the

battleground state of Wisconsin on Tuesday as the Democrats's

presumed nominee.

The pan-European STOXX index was up 0.1% while U.S.

futures were down 0.2% following a 1.1% rise in the S&P

500 on Monday.

The U.S. dollar, which had edged higher on Monday, was

unchanged against a basket of currencies on Tuesday.

"Markets appear to be in a bit of a holding pattern this

morning having now digested the weekend news flow of Biden

quitting the presidential race," said Michael Brown, senior

strategist at broker Pepperstone in London.

Investors will now focus on whether the polls show a closer

race against Trump than when Biden was the Democratic candidate,

Brown said.

"You'd expect that, were polls to narrow, and the race be

seen as a closer contest, volatility to tick higher, and perhaps

some downside creep into the equity space too," he added.

Still, Asian markets remained supported on Tuesday, with

Taiwan's benchmark snapping five sessions of losses,

rising over 2%.

That tracked a broader rebound in chipmaking shares

recovering some of the $100 billion in market value that was

wiped off Taiwan's TSMC, the world's largest contract

chipmaker, over the previous few sessions.

The stock had come under pressure following Trump's comments

that Taiwan should pay to be defended and accusing the island of

stealing American chip business

Focus was firmly on earnings on Tuesday, with Tesla

and Alphabet due to report after the session close in

New York, beginning the season for the "Magnificent Seven"

megacap group of stocks.

The tech sector is projected to increase year-over-year

earnings by 17%, while profit for the communication services

sector is seen rising about 22%, according to LSEG

IBES, but richly valued stocks are also prone to disappointment.

Others reporting include France's LVMH, which will

be closely-watched as sliding demand from China has pummelled

the sector.

DATA WATCH

In currency markets the main mover was the yen, which was

last up 0.6% against the dollar at 156.04.

Comments form a senior Japanese politician on Monday added

to the pressure on the Bank of Japan, which meets on July 31, to

keep hiking rates to help boost its currency, which Tokyo has

intervened to prop up this month.

Australia and New Zealand's currencies,

often seen as liquid proxies for Chinese yuan, also dropped

following China's surprise interest rate cuts on Monday, which

has also put a spotlight on weakness in the world's second

largest economy.

The euro was down 0.2% at $1.0873.

Focus remained on central banks. Markets have priced in two

U.S. rate cuts this year with the first in September, but

expectations could be ruffled by growth and consumer price data

due later in the week.

Having moved higher on Monday, benchmark 10-year Treasury

yields inched two basis points lower to 4.24% and

two-year yields, sensitive to interest rate

expectations, were down 2 bp to 4.51%.

Advance U.S. gross domestic product is forecast to show

growth picking up to an annualised 2% in the second quarter,

while the closely watched Atlanta Fed GDPNow indicator points to

growth of 2.7%, suggesting some risk to the upside.

The core personal consumption expenditures index, the Fed's

preferred inflation measure, is seen rising 0.1% in June,

pulling the annual pace down a tick to 2.5%.

Gold prices were pinned around $2,400 after peaking

above $2,450 last week. Brent crude futures, which hit a

one-month low on Monday, were up 0.1% at $82.48 a barrel.

Bitcoin, which has rallied on bets a Trump

administration would take a light-touch approach to

cryptocurrency regulation, was down 1.8% to $66,920.