Indian shares up ahead of F&O expiry; U.S.-China meet in focus

* NSE index up 0.3%, BSE index up 0.4%

* Financials lead gains

* Coffee Day up on report Coca-Cola eyeing stake in CCD

June 27 (Reuters) - Indian shares tracked upbeat Asian stocks on Thursday, ahead of expiry of derivative contracts, on hopes of a tentative trade truce between the United States and China.

The South China Morning Post (SCMP), citing sources, said Washington and Beijing were laying out an agreement that would help avert the next round of tariffs on an additional $300 billion of Chinese imports.

MSCI’s broadest index of Asia-Pacific shares outside Japan were up 0.6%.

U.S. President Donald Trump is expected to meet with Chinese President Xi Jinping on Saturday in Osaka, a conversation that could revive stalled negotiations between the world’s two biggest economies or launch a much deeper, costlier trade war that would drag down global growth and roil financial markets.

Although, some nervousness remained after Trump said on Wednesday that a trade deal with Xi was possible but he is prepared to impose U.S. tariffs on virtually all remaining Chinese imports if the two countries continue to disagree.

Back home, sentiment dampened on renewed worries of a trade dispute with the United States after Trump called out India’s move to raise tariffs on U.S. goods.

Earlier this month, India imposed higher retaliatory tariffs on 28 U.S. products including almonds, apples and walnuts, following Washington’s withdrawal of key trade privileges for New Delhi.

The broader NSE index was up 0.34% at 11,888.10 as of 0513 GMT, while the benchmark BSE index was 0.38% higher at 39,740.89.

Technical charts indicate that the NSE index is biased to test a resistance at 11,920.34.

“Markets are jittery due to the uncertainty coming from the trade tiffs between U.S. and China and markets will continue to be cautious till the conclusion from the G20 meeting comes out,” said Saurabh Jain, AVP Research, SMC Global Securities

Financials were among the biggest gainers on the index. Indiabulls Housing Finance Ltd gained 2.2%, while Axis Bank Ltd and IndusInd Bank Ltd added more than 2% each.

Among other gainers, Coffee Day Enterprises Ltd rose 8.8% on reports that Coca-Cola Co is in talks to pick up a significant stake in Café Coffee Day. (Reporting by Krishna V Kurup in Bengaluru; editing by Uttaresh.V)