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GLOBAL MARKETS-Asian shares edge higher, Fed chief speculation tempers appetite

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* Nikkei could break its 13-day winning streak

Crude oil futures firm after overnight drop

By Lisa Twaronite

TOKYO, Oct 20 (Reuters) - Asian shares inched slightly higher on Friday, but grappled for firmer leads as speculation about who the next U.S. central bank chief will be kept global investors wary.

Shares in New Zealand slipped 0.1 percent, snapping 13 gaining sessions, after the nationalist New Zealand First Party agreed to form a new government with centre-left Labour Party following weeks of political negotiations.

MSCI's broadest index of Asia-Pacific shares outside Japan , which scaled a 10-year peak on Tuesday, was up 0.1 percent in early trading, but still down 0.2 percent for the week.

Japan's Nikkei slipped 0.3 percent, still on track for a robust weekly gain of 1.1 percent. The Nikkei logged its 13th winning session on Thursday, its longest such streak since 1988.

U.S. stocks were almost flat on Thursday, with Apple Inc falling 2.4 percent on signs of weak demand for the iPhone 8 that caused analysts and investors to question the company's staggered release strategy for its latest phones.

The dollar buckled and U.S. bond yields dipped after a report that President Donald Trump was leaning toward Jerome Powell as the next chair of the Federal Reserve.

Powell is the most dovish among three other Republican candidates. The current chair, Janet Yellen, a Democrat who is seen as a policy dove, is also on Trump's short list, though few investors expect Trump to nominate a Democrat to the job.

"Clarity about the Fed nomination would be positive for the dollar," said Masafumi Yamamoto, chief forex strategist at Mizuho Securities.

The dollar index, which tracks the greenback against a basket of six major rivals, inched 0.1 percent lower to 93.163, up slightly for the week.

The dollar edged up to 112.59 yen, on track to gain 0.7 percent for the week, after notching a nearly two-week high of 113.145 yen on Thursday, as investors awaited Sunday's Japanese general election.

In Europe, shares notched their largest drop in two months on concerns over political upheaval in Spain and after disappointing results from large companies such as Unilever, France's Publicis and Germany's Kion.

Spain's central government said on Thursday it would suspend Catalonia's autonomy and impose direct rule after the region's leader threatened to go ahead with a formal declaration of independence if Madrid refused to hold talks.

Japanese Prime Minister Shinzo Abe's ruling bloc is expected to secure a roughly two-thirds majority in Sunday's general election.

That kind of result would not have a big impact on the yen," said Yamamoto, "but it is important to see whether or not the 1/8ruling Liberal Democratic Party 3/8 considers it a victory for Abe or not, and it's difficult to say where the threshold for that might be."

The euro ticked up to $1.1848, from this week's low of $1.1730.

The New Zealand dollar licked wounds at $0.7009 after a 1.7 percent fall on Thursday, its largest daily fall since June 2016. The small, nationalist New Zealand First Party agreed to form a new government with Labour Party leader Jacinda Ardern, ending the National Party's decade in power.

Crude oil prices firmed after shedding more than 1 percent on Thursday, breaking four days of gains, pressured by larger-than-expected product inventories in the United States and profit-taking after a recent run-up in markets.

Brent crude was up 9 cents at $57.32 a barrel, while U.S. crude added 13 cents to $51.42.

(Additional reporting by Hideyuki Sano; Editing by Sam Holmes)