* Trade deal hopes lift shares, but investors on edge - Analyst
* Mining stocks best performers, BHP & Rio gain
* Bega Cheese biggest loser, flags weak earnings on drought woes
By Rashmi Ashok
Oct 29 (Reuters) - Australian shares inched higher on Tuesday on expectations that the United States and China would strike a trade agreement soon, however, caution prevailed as weary investors await concrete details on the deal.
The S&P 500 hit a record high and the Nasdaq fell just short of a lifetime high on Monday after U.S. President Donald Trump said he expected to sign a significant part of a trade deal with China ahead of schedule, but did not specify an exact date.
S&P/ASX 200 index .AXJO was up 0.2% or 13 points at 6,753.70, as of 0023 GMT. The index was set for a seven-day winning streak, having closed marginally higher on Monday.
"In recent days, the market has been starting off well and then fading in the second half of the session - it's a sign that there's not a huge amount of enthusiasm," said Steven Daghlian, market analyst at Commsec.
Markets remained cautious and vulnerable to a drop, particularly as the index moves closer to record highs pinned on expectations of a trade deal, he said.
"Even if there is good news saying the trade talks are going better than expected, it doesn't mean much until it is put in writing."
Mining stocks .AXMM largely supported the index, with global miner BHP Group BHP.AX adding 1.3% and rival Rio Tinto (LON:RIO) Ltd RIO.AX rising 1.4%. The smaller Fortescue Metals Group FMG.AX rose 1.1%.
Among technology stocks .AXIJ , Bravura Solutions Ltd BVS.AX was the best performer, adding as much as 9.2% after saying it would buy of domestic software maker FinoComp in an earnings-accretive deal. stocks .AXHJ also rose, with sector heavyweight CSL Ltd CSL.AX inching to a record high, while Cochlear Ltd COH.AX put on 1.3%.
However, financials posted a subdued performance, with all of the "Big Four" banks inching lower.
Energy stocks .AXEJ also dropped, with Origin Energy Ltd ORG.AX down 1.1%, while sector heavyweight Woodside Petroleum Ltd WPL.AX shed 0.6%.
Bega Cheese Ltd BGA.AX was the biggest loser on the benchmark, slipping 17% to a six-year low. The dairy goods maker flagged weaker earnings in fiscal 2020, citing increased competition brought about by reduced supply amid a prolonged drought. New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.4% or 37.41 points to 10,826.05.
Dairy giant a2 Milk Company Ltd ATM.NZ added 1.6%, while electricity generator Genesis Energy Ltd GNE.NZ gained 2.3%.