Australia shares set to gain but rocket attack in Baghdad may weigh; NZ flat

    Jan 9 (Reuters) - Australian shares are set to open higher
on Thursday after U.S. President Donald Trump's tempered
response to Iranian missile attacks on U.S. forces in Iraq
helped calm markets, although reports of fresh missile attacks
are likely to cap gains.
    U.S. stocks closed higher after Trump said there were no
casualties from the attacks, adding that the United States 
having military power and equipment did not mean it would have
to be used against Iran.             
    However, reports of a rocket attack inside Iraqi capital
Baghdad's heavily fortified green zone may weigh on stocks in
Australia. The share price index futures          fell about 22
points on the news.             
    By 2113 GMT, the index futures traded just 46 points or 0.7%
higher, a 19.6-point discount to the underlying S&P/ASX 200
index         close. The benchmark fell 0.1% on Wednesday.
    Neighboring New Zealand's benchmark S&P/NZX 50 index        
rose 1.64 points or 0.01% in early trade.

 (Reporting by Rashmi Ashok in Bengaluru; editing by Grant