Updates at 0400 GMT

By Rae Wee

SINGAPORE, Sept 10 (Reuters) -Asian stocks inched slightly higher on Tuesday but struggled to sustain an upbeat rally on Wall Street as concerns about a faltering Chinese economy dampened the market mood.

Data on Tuesday showed China's exports grew at their fastest since March 2023 in August, suggesting manufacturers are rushing out orders ahead of tariffs expected from a number of trade partners, while imports missed forecasts amid weak domestic demand.

That followed Monday's inflation figures that pointed to still-fragile domestic demand as producer price deflation worsened, keeping alive calls for further stimulus from Beijing to shore up its economy.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was last up 0.14%, languishing near a one-month low hit in the previous session. Its gains were capped by a slump in Chinese stocks.

China's CSI300 blue-chip index .CSI300 fell to a seven-month trough and last traded 0.52% lower, while the CSI Tourism Index .CSI930633 tumbled to a record low, underscoring anaemic consumer demand. .SS

"The stimulus, it clearly has to be more. But unfortunately, it's been done in very, very small parcels and targeted, and it just seems the economy is just not turning around very quickly," said Jun Bei Liu, a portfolio manager at Tribeca Investment Partners.

Adding to headwinds for the Chinese economy were escalating trade tensions, after the U.S. House of Representatives on Monday passed a bill that aims to restrict business with China's WuXi AppTec 603259.SS, BGI and several other biotech companies on national security grounds.

Hong Kong-listed shares of WuXi AppTec 2359.HK and WuXi Biologics 2269.HK were last down more than 8% and nearly 4%, respectively.

The broader Hang Seng Index .HSI in Hong Kong was last up 0.29%, though China's beleaguered property sector remained a huge drag, with the Hang Seng Mainland Properties Index .HSMPI tumbling to a record low on Tuesday.

Elsewhere in Asia, Japan's Nikkei .N225 tacked on 0.35% and looked set to reverse five straight sessions of losses. .T

FED CUTS

In the broader market, investors remained focused on Wednesday's U.S. inflation report, which would likely provide more clarity on whether the Federal Reserve could deliver an outsized 50-basis-point cut when it meets next week.

Wall Street had staged an impressive rebound in the previous session, after all three major U.S. stock indexes surged more than 1%, recovering from last week's selloff.

U.S. futures pared some of their gains on Tuesday, with S&P 500 futures ESc1 falling 0.21%, while Nasdaq futures NQc1 slipped 0.05%.

EUROSTOXX 50 futures STXEc1 tacked on 0.02%, though FTSE futures FFIc1 lost 0.34%.

"Risk-off sentiment stabilized overnight and U.S. equities rebounded on dips buying after Friday's sell-off," said economists at ING in a note.

"As the non-farm payrolls numbers failed to convince for a 50bp cut, markets are now looking to the U.S. inflation data to understand the pace of the Fed's rate cuts."

Expectations are for headline inflation to have further slowed to an annual 2.6% in August, as compared to July's 2.9%.

"If the inflation number is any different, or significantly different from expectations, then the number of rate cuts (priced in) will be changed," said Jun Bei Liu, a portfolio manager at Tribeca Investment Partners.

"At the moment, I think the market is reasonably aggressive in pricing quite a lot this side of the year, and so that probably opens up for a bit more... volatility that we have seen in the last couple of weeks."

Market pricing points to about 110bps of cuts expected from the Fed this year. FEDWATCH

In currencies, the U.S. dollar held broadly steady, rising 0.09% against the yen JPY=EBS to 143.26.

The euro EUR=EBS rose 0.03% to $1.1037, while sterling GBP=D3 was flat at $1.30735.

Later on Tuesday, Democrat Kamala Harris and Republican Donald Trump will debate for the first time ahead of the Presidential election on Nov. 5, with the two locked in a tight race for the top job.

Elsewhere, oil prices slipped, with Brent crude futures LCOc1 last down 0.03% to $71.82 a barrel, while U.S. crude CLc1 eased 0.12% to $68.63 per barrel. O/R

Spot gold XAU= fell 0.14% to $2,501.82 an ounce. GOL/

Reporting by Rae Wee; Editing by Lincoln Feast and Sam Holmes

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