* MSCI Asia ex-Japan +0.3 pct
* China blue chips surge; MSCI says it will quadruple China A-share weighting
* European shares seen opening higher
* U.S. Q4 GDP up 2.9 pct, better than expected
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Andrew Galbraith
SHANGHAI, March 1 (Reuters) - Asian shares edged up on Friday after index publisher MSCI announced it would raise the weight of Chinese mainland shares in its global benchmarks, while strong U.S. economic data lifted the dollar.
China's blue-chip CSI300 index .CSI300 surged 2.2 percent to finish off its best week since November 2015, after MSCI said it would quadruple the weighting of China's A-shares in its global benchmarks later this year, potentially drawing more than $80 billion of fresh foreign inflows to the world's second-biggest economy. along with strength in other markets in the region, helped push MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS up 0.3 percent.
Shares in Europe are seen following Asia higher, with financial spreadbetters expecting London's FTSE .FTSE and Frankfurt's DAX .GDAXI to open 0.5 percent higher. Paris' CAC .FCHI is expected to rise 0.3 percent at the open.
Friday's Chinese stock rally follows a strong run this year, with major indexes posting their best month in nearly four years in February, driven by expectations for government stimulus and policy support, as well as optimism over U.S.-China trade talks.
"Just two months ago China was facing one of the worst years it's ever had in terms of equity market performance. So I think investors are taking very seriously the fact that the rebalancing of MSCI is happening," said Jim McCafferty, head of equity research, Asia ex-Japan at Nomura.
"There's a disconnect between China's place in the world economy and China's place in the world's stock markets. And the two things can't be diverged for so long," he said.
Elsewhere in the region, Japan's Nikkei 225 .N225 ended 1 percent higher, helped by a weaker yen, while Australian shares .AXJO added 0.4 percent.
The gains in Asia contrast with a weaker finish on Wall Street on Thursday. The Dow Jones Industrial Average .DJI fell 0.27 percent to 25,916 points, the S&P 500 .SPX lost 0.28 percent to 2,784.49 and the Nasdaq .IXIC dropped 0.29 percent to 7,532.53.
U.S. President Donald Trump on Thursday fuelled concerns over trade talks between the United States and China, warning that he could walk away from a trade deal with China if it were not good enough.
But in subsequent comments Thursday, White House economic adviser Larry Kudlow called progress in the negotiations "fantastic" and said the countries were "heading towards a remarkable, historic deal." messages on trade combined with the collapse of the summit between President Trump and North Korean leader Kim Jong Un on denuclearisation, and data from China showing slowing factory activity to pressure U.S. stocks. that President Trump walked out of the meeting with Supreme Leader Kim, because the two sides couldn't reach an agreement over North Korea's nuclear disarmament, dashed hopes for an easing in geopolitical tensions," analysts at ANZ said in a morning note.
South Korea's financial markets are closed Friday for a public holiday.
HIGHER YIELDS
Better-than-expected U.S. economic growth in the fourth quarter had little impact on U.S. stocks. Gross domestic product rose 2.9 percent for the year, just shy of the 3 percent goal set by the Trump administration. GDP data lifted yields on benchmark 10-year Treasury notes US10YT=RR . After rising to a high of 2.7222 percent on Friday, the yield eased to 2.7204 percent, still up from a U.S. close of 2.711 percent on Thursday.
Dallas Federal Reserve Bank President Robert Kaplan said on Thursday that it will take time to see how much the U.S. economy is slowing, supporting views of the Fed's rate-hike holiday at least through to June.
The dollar also rose on the U.S. data, adding 0.4 percent against the yen to 111.80, having earlier touched a new high for the year at 111.82. JPY= .
The dollar index .DXY which tracks the greenback against major rivals, was up 0.2 percent at 96.302.
In commodity markets, U.S. crude CLc1 added 0.8 percent to $57.67 a barrel, and Brent crude LCOc1 rose 1 percent to $66.95 per barrel.
Spot gold XAU= fell 0.3 percent on the stronger dollar, to $1,309.35 per ounce. GOL/
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