* China shares, data in focus
* Yen seen benefiting should China shares extend declines
* Sterling stands firm after bounce from 4-mth lows
By Shinichi Saoshiro
TOKYO, Sept 8 (Reuters) - The dollar edged up against the yen early on Tuesday, as the prior session's gains in European and Tokyo equities tempered demand for the safe-haven Japanese currency.
Early Asian trading was subdued due to the closure of U.S. markets on Monday for a holiday, with the dollar up 0.1 percent at 119.40 yen JPY= , pulling away from an overnight low of 118.66.
The euro was steady at $1.1165 EUR= , having been confined to a narrow $1.1122-1.1177 range over the past two days.
The dollar tentative gains against the yen, however, were seen hinging on how risk asset markets react to Chinese trade data and Shanghai shares later in the session.
"With the U.S. markets closed on Monday, risks emanating from China will be the main currency driver. Shanghai stocks will be in focus and especially how China's trade data affects sentiment there," said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
China's August export and import data will be released around 0200 GMT. ECONCN
"The yen has not only benefited from risk aversion but it is becoming the safe-haven currency of choice. The euro also attracted safe-haven bids before, but it has lost its lustre after hints of more easing by the European Central Bank," Ishikawa said.
The euro traded little changed at 133.325 yen EURJPY= and within some distance of a four-month low of 132.24 touched on Friday.
Sterling managed to pull away as bargain hunting set in after the currency tumbled to a four-month low, driven by last week's disappointing services sector report that added to doubts over whether the Bank of England would be able to raise interest rates any time soon.
The pound was steady at $1.5276 GBP=D4 after hitting the four-month trough of $1.5163 on Friday. (Editing by Shri Navaratnam)