* Asian stock markets : tmsnrt.rs/2zpUAr4
* Most Asian share indices slip after two days of gains
* Trump holding up China deal, talks down Fed rates and dollar
* Chinese inflation subdued ex-food, U.S. CPI due next
* Oil prices turn lower once more
By Wayne Cole
SYDNEY, June 12 (Reuters) - Asian share markets took a step back on Wednesday as the White House took a tough line on trade talks with China, while a looming reading on U.S. inflation could shuffle the odds for an early cut in interest rates there.
Data on Chinese inflation showed the annual pace picked up to a 15-month high of 2.7%, but mainly because of surging pork prices. Excluding food, inflation rose only 1.6% and suggested there was plenty of scope for more stimulus.
Market moves were modest, with MSCI's broadest index of Asia-Pacific shares outside Japan off 0.5% after two days of gains.
Japan's Nikkei dipped 0.1%, while E-Mini futures for the S&P 500 hardly budged. Shanghai blue chips eased 0.8% following a 3% jump the day before.
The Hong Kong market lost 1.5% as thousands of demonstrators stormed roads next to government offices to protest against a proposed extradition bill.
"The impact was short lived in the past," noted Alex Wong, director at Ample Finance Group in Hong Kong.
"This time people will look at how the U.S. reacts to this kind of news. The U.S. attitude towards Hong Kong and China are also not the same."
President Donald Trump said on Tuesday he was holding up a trade deal with China and had no interest in moving ahead unless Beijing agrees to four or five "major points" which he did not specify.
He also took aim at the Federal Reserve, saying interest rates were "way too high" and the central bank had "no clue".
Fed policymakers will meet on June 18-19 against the backdrop of rising trade tensions, slowing U.S. growth and a sharp step-down in hiring in May that have led markets to price in at least two rate cuts by the end of 2019.
Futures imply around an 80% chance of an easing as soon as July.
That might change depending on what U.S. consumer price data show later in the session. Headline inflation is seen slowing a touch to 1.9%, with core steady at 2.1%.
All the uncertainty around trade saw Wall Street break a six-day winning streak to end flat on Tuesday. The Dow eased a tiny 0.05%, while the S&P 500 lost 0.03% and the Nasdaq 0.01%.
Trump also put currency markets on edge by tweeting that the euro and other currencies were "devalued" against the dollar, putting the United States at a "big disadvantage".
That was enough to give the euro a lift to $1.1332, just short of the recent three-month top of $1.1347. The dollar eased back a touch on the yen to 108.44 and stalled on a basket of currencies at 96.694.
"It is one thing talking down a USD that has an upward bias, it is another pushing on a currency market where the door is slowly opening toward USD weakness," said Alan Ruskin, global head of G10 FX strategy at Deutsche Bank.
"The President's tweets on the USD have the potential to have much more lasting impact in the coming election year," he cautioned. "Global conditions are nicely set for what has colourfully been described as a 'currency war' or a currency race to 'the bottom'."
In commodity markets, all the chatter of rate cuts globally kept gold near 14-month highs at $1,332.02 per ounce.
Oil prices eased as concerns about a global economic slowdown offset wagers that OPEC and its allies will extend their supply curbs.
Hedge fund managers have been liquidating bullish oil positions at the fastest rate since late 2018 amid increasing economic fears.
Brent crude futures fell $1 to $61.29, while U.S. crude lost 84 cents to $52.43 a barrel.
Editing by Simon Cameron-Moore