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GLOBAL MARKETS-Asian shares at highest since early March, weak dollar boosts commodities

Published 2021-04-20, 01:58 a/m
© Reuters.

* Asian stock markets: https://tmsnrt.rs/2zpUAr4

* Global asset performance http://tmsnrt.rs/2yaDPgn

* World FX rates http://tmsnrt.rs/2egbfVh

By Alun John

HONG KONG, April 20 (Reuters) - Asian shares hit a six-and-a-half week top on Tuesday, shaking off an initial drag from tech-driven Wall Street losses, while the dollar stayed at multi-week lows against most other major currencies in a boost for commodities.

Chinese blue chips .CSI300 rose 0.30% and Korea .KS11 gained 0.38%, helping MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS to add 0.26% and reach its highest since early March.

E-mini futures for the S&P 500 ESc1 rose 0.23%, but Euro Stoxx 50 futures STXEc1 fell 0.13% and FTSE futures FFIc1 were down 0.07%, suggesting a more cautious European open.

"It is a Goldilocks scenario for Asia in the sense that you've got expectations of double digit earnings growth, and valuations which look attractive relative to the U.S. equity market and even the MSCI world index ," said Andrew Gillan head of Asia ex Japan equities at Janus Henderson Investors.

However, Asian valuations are fair rather than cheap relative to their historical levels, Gillan noted.

Japan bucked the trend in Asia as the Nikkei .N225 fell 2.13% on worries that the possible reintroduction of COVID-19 emergency measures in the country's biggest cities would slow the economic recovery. currency markets, the dollar continued its recent weakness, falling further from six-week lows it hit on Monday.

The risk friendly Aussie AUD= rose as much as 0.6% against the greenback to reach a one-month high, partly due to upbeat remarks from Australian central bank.

The euro EUR= gained 0.24%.

"In our view, USD can remain heavy this week as focus shifts from U.S. economic outperformance to the improving global economic outlook more broadly," analysts at CBA wrote in a research note.

The weak dollar helped push up commodity prices.

U.S. crude CLc1 and Brent LCOc1 both gained about 1%, while three-month London copper CMCU3 traded just shy of its highest level since August 2011. O/R

Spot gold XAU= rose 0.17% to 1,771.37 per ounce. GOL/

Earlier, major Wall Street indexes drew back from record highs hit list week, dragged by shares of Tesla Inc TSLA.O .

The electric-car maker slid 3.4% after a vehicle believed to be operating without anyone in the driver's seat crashed into a tree on Saturday north of Houston, killing two occupants. tech-heavy Nasdaq .IXIC was the biggest mover, falling 0.98%, while the Dow Jones Industrial Average .DJI declined 0.36%, and the S&P 500 .SPX 0.53%. .N

The yield on benchmark 10-year Treasury notes US10YT=RR rose to 1.6119% compared with its U.S. close of 1.599%.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ World FX rates YTD

http://tmsnrt.rs/2egbfVh Global asset performance

http://tmsnrt.rs/2yaDPgn

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Sam Holmes and Himani Sarkar)

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