By Wayne Cole

SYDNEY (Reuters) - Asia share markets crept higher on Monday as Hong Kong's tech sector stole the limelight, while upbeat Japanese economic growth contrasted with a weak U.S. retail sales report to lift the yen on the dollar.

Geopolitics remained in focus with reports that talks on the Russian-Ukraine conflict will begin in Saudi Arabia this week, though the participants are not entirely clear.

The imminent threat of reciprocal U.S. tariffs has receded until April, but the risk that they might include levies based on value added taxes in other countries was a major worry.

"The prospect, however misguided, of the U.S. levying an additional 20% tariff on all EU imports, on top of whatever else it deems appropriate, and to varying degrees on all other countries who have VAT regimes is a truly terrifying prospect in terms of the implications for global growth," said Ray Attrill, head of FX research at National Australia Bank (OTC:NABZY).

The Financial Times reported on Sunday that the European Commission would explore tough import limits on certain foods made to different standards in an effort to protect its farmers, echoing President Donald Trump's reciprocal trade policy.

For now, investors were just relieved that major tariffs had not already been introduced and MSCI's broadest index of Asia-Pacific shares outside Japan firmed 0.3%.

Tokyo's Nikkei edged up 0.2% after Japan reported surprisingly strong economic growth of an annualised 2.8% for the fourth quarter. The gains were limited by a further rise in the yen to 151.65 per dollar.