NEW YORK, March 1 (Reuters) - Asian shares are poised to
rally on Tuesday as a halt in a recent bond markets sell-off
calmed investor nerves and lifted riskier assets, although oil
prices were on the defensive on fears of slowing Chinese energy
consumption.
Australian shares .AXJO jumped 0.8% in early trade, while
E-mini S&P futures ESc1 climbed 0.15%. Japan's Nikkei .N225
opened 0.93% higher.
U.S. stocks .N had surged overnight, with the S&P 500
.SPX posting its best day in nearly nine months, after a
retreat in bond yields and optimism about more U.S. fiscal
stimulus and a wider distribution of the COVID-19 vaccine
whetted investor appetites for risk.
For now, all eyes will be on Australia's central bank, which
holds its monthly policy meeting on Tuesday. Analysts expect the
Reserve Bank of Australia to hold key rates at a historic low of
0.1% when it announces its policy decision at 0330 GMT.
"There's everything to like about the rally in EU and U.S.
equity markets," said Chris Weston, the head of research at
Pepperstone Group Ltd in Australia.
"Financials outperformed, with 95% of stocks in the S&P 500
gaining on the day," he said, adding that "clearly investors are
seeing the world in a new light".
U.S. stocks were roiled last week when a sell-off in
Treasuries pushed the 10-year Treasury yield US10YT=RR to a
one-year high of 1.614%. The 10-year yield was edging lower in
early trade at 1.4255%. US/
Demand for riskier assets did not slug the dollar, usually
regarded as a safe-haven currency, as investors bet on fast
growth and inflation in the United States. The U.S. dollar index
=USD gained 0.3% in early trade against a basket of currencies
to stand at 91.029, within sight of a three-week high hit
overnight. USD/
The Australian dollar AUD=D4 was little changed at
$0.77685 ahead of the RBA meeting.
A stronger dollar weighed on gold XAU= , and the precious
metal was on the defensive at $1,722.8879 an ounce early
Tuesday. GOL/
The exuberance in risk assets did not help energy markets.
Oil prices fell more than 1% overnight after data showed China's
factory activity growth slipped to a nine-month low in February,
owing in part to disruptions over the Lunar New Year holiday.
There were also fears among energy investors that OPEC may
increase global supply following a meeting this week. O/R
Brent crude LCOc1 fell 1.7% to $63.31 a barrel, while U.S.
West Texas Intermediate crude CLc1 lost 0.6% to $60.3.
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