GLOBAL MARKETS-Asian shares jump, yields rise as Fed readies corp bond buying

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Fed announces start of corporate bond buying programme
* Asia equities rally as mood improves
* Treasury yields edge higher

By Stanley White
TOKYO, June 16 (Reuters) - Asian shares and Wall Street
futures rallied on Tuesday as the formal start of the Federal
Reserve's corporate bond buying programme boosted global
investor sentiment and calmed earlier worries about a second
wave of coronavirus infections.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 2.2%, its biggest one-day gain since June
1. Australian stocks .AXJO rose 3.0%, while shares in China
.CSI300 rose 1.2%.
U.S. stock futures, the S&P 500 e-minis ESc1 , were up
0.98% following a late rally on Wall Street on Monday. Treasury
yields rose and the yield curve steepened.
The Fed said it will start purchasing corporate bonds on
Tuesday in the secondary market, one of several emergency
facilities launched in the wake of the coronavirus pandemic.
Global equities had fallen sharply from late last week due
to worries about the U.S. economy and confirmation of a new
coronavirus cluster in Beijing.
However, the Fed's corporate bond purchases and data showing
new infections in Beijing are under control helped equities
quickly reverse course and head higher.
"Equities were overbought and corrected lower, but the S&P
500 has bounced off support because of the Fed," said Shane
Oliver, head of investment strategy and chief economist at AMP
Capital Investors in Sydney.
"The markets will continue to go higher a long as economies
continue to reopen and as long as the number of coronavirus
cases is not large enough to stop the reopening."
Sentiment in Asia got a further boost after health officials
said there were 27 new coronavirus cases in Beijing, down from
36 new cases the previous day. Japan's Nikkei stock index .N225 and shares in South Korea
.KS11 were both on course for their biggest daily gain in two
months.
The Australian dollar AUD=D3 rose 0.31% to $0.6942. The
Aussie is often traded as a liquid proxy for risk because of its
close ties to China's economy and global commodities.
The yen JPY=D3 was little changed at 107.32 per dollar
before a Bank of Japan meeting ending later on Tuesday.
No major policy moves are expected, but some investors will
focus on any comments about the global debate on capping
government bond yields.
The Fed on Monday also announced eagerly-awaited details of
its programme to lend funds directly to companies. Benchmark 10-year Treasury yields notes US10YT=RR edged up
to 0.7363%, while the spread between two-year and 10-year yields
US2US10=TWEB widened to 54 basis points in a sign of improving
risk appetite.
Crude oil futures erased gains and fell amid persistent
doubts over whether supply cuts would be enough to reduce an oil
glut.
U.S. crude CLc1 fell 1.2% to $36.68 a barrel. Brent crude
LCOc1 declined by 1.2% to $39.23 per barrel.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
S&P 500 market cap, daily moves https://tmsnrt.rs/2YCDodm
Asset performance vs outbreak https://tmsnrt.rs/2YF3T1T
Stocks and oil versus COVID-19 cases https://tmsnrt.rs/3cXWNdO
Asia stock markets https://tmsnrt.rs/2zpUAr4
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