(Reuters) - Australian shares are expected to edge higher on Thursday as upbeat comments from U.S. Federal Reserve Chair Jerome Powell on the U.S. economy is expected to ease worries of a global slowdown, but fears concerning the Sino-U.S trade deal may cap gains.
Powell emphasized that even after a year in which many market analysts saw a rising risk of a U.S. recession, the Fed's outlook is for continued growth.
Meanwhile, Wall Street Journal reported on Wednesday that U.S.-China trade negotiations had "hit a snag" over farm purchases, with China not wanting a deal that looks one-sided in the favour of the United States.
The local share price index futures <YAPcm1> edged 0.3% higher, a 9.6-point premium to the underlying S&P/ASX 200 index <.AXJO> close. The benchmark fell 0.8% on Wednesday.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> fell 0.1% by 2105 GMT.
(Reporting by Shreya Mariam Job in Bengaluru; Editing by Sandra Maler)
