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GLOBAL MARKETS-Asian stocks edge higher, Aussie in demand on recovery signs

Published 2021-03-02, 09:18 p/m
© Reuters.

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

* Equities enjoy gains due to economic optimism

* Treasury market remains calm after sell-off

* Aussie in focus after positive economic data

By Stanley White and Koh Gui Qing

TOKYO/NEW YORK, March 3 (Reuters) - Asian shares edged higher on Wednesday as investors shrugged off concerns that stocks may have rallied too far too fast in the past year, and focused instead on optimism that more imminent U.S. stimulus will energise the global economic recovery.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.44%. Australian shares .AXJO were up 0.62%, while Japan's Nikkei stock index .N225 rose only 0.03%. Shares in China .CSI300 gained 0.63%.

E-mini S&P futures ESc1 were up 0.23%.

Wall Street had retreated overnight after beginning March with a bang, with the S&P 500 staging its best one-day rally in nine months on Monday. .N

But some analysts warned that worries that stock prices may be frothy, a fear echoed by a top Chinese regulatory official on Tuesday, may make it harder for equity markets to hang on to gains. Fears that last week's sell-off in U.S. Treasuries, which rattled stock markets, could resume may also put a lid on stock prices, they said.

"While markets have stabilised..., the tone remains tenuous as investors continue to fear a further sell-off in rates," analysts at TD Securities said in a note.

The cautious mood weighed on the U.S. dollar, which has benefited in recent days from investor hopes that the United States will enjoy a faster economic recovery, and that the U.S. central bank will be more tolerant of higher bond yields. USD/

The U.S. dollar index USD= stood at 90.787, nursing a 0.2% loss from the previous session.

The Australian dollar AUD=D3 shined yet again, rising to $0.7828 after stronger-than-expected economic growth in the fourth quarter fuelled hopes for a V-shaped recovery from the coronavirus pandemic. U.S. government bond yields dipped again for the third consecutive day as investors paused a recent sell-off ahead of a slew of U.S. economic data that will be released later this week. The yield on 10-year Treasury notes US10YT=RR stood at 1.4085%, down from last week's high of 1.614%. US/

The U.S. stock market was roiled last week when benchmark yields spiked to a one-year high on investor bets that a strong U.S. economic rebound amid ultra-loose monetary conditions could fuel inflation. Federal Reserve officials have said that inflation concerns are premature, however, and warned that rising yields could tighten financial conditions and constrain an economic recovery.

MSCI's broadest index of global stocks .MIWD00000PUS edged up by 0.05%.

Oil prices were mixed hitting a two-week low overnight on expectations that OPEC+ producers will ease supply curbs at their meeting later this week as economies start to recover from the coronavirus crisis.

U.S. West Texas Intermediate crude CLc1 was little changed at $59.74 a barrel, while Brent futures LCOc1 rose 0.22% to $62.84 a barrel. O/R

Cryptocurrency bitcoin BTC=BTSP erased early losses and rose 0.62% to $48,814. The digital asset is up 69% so far this year as it gains more acceptance in mainstream financial circles.

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http://tmsnrt.rs/2jvdmXl Global currencies vs. dollar

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http://tmsnrt.rs/2ihRugV MSCI All Country World Index Market Cap

http://tmsnrt.rs/2EmTD6j

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