SoFi CEO enters prepaid forward contract on 1.5 million shares
* Tokyo's Nikkei at 30 year high
* Hong Kong at best point in 32 months
* US futures gain 0.5%
* World FX rates http://tmsnrt.rs/2egbfVh
(Adds analyst commentary)
By Scott Murdoch and Hideyuki Sano
HONG KONG, Feb 16 (Reuters) - Asian shares rallied on
Tuesday, setting the stage for world equities to extend their
bull run for a 12th consecutive session, as investors banked on
a rollout of coronavirus vaccines to keep the global economic
recovery on track.
Oil prices jumped to a 13-month high as a deep freeze due to
a severe snow storm in the United States not only boosted power
demand but also threatened oil production in Texas.
Asia's surging shares set the way for renewed optimism on
global markets.
S&P500 futures ESc1 were up 0.5% and MSCI's all country
world index (ACWI), which has risen every day so far this month,
ticked up slightly.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS shot up 0.62%, while Japan's Nikkei .N225 rose
1.4% to a 30-year high.
In Hong Kong, the Hang Seng Index .HSI rose 1.4% to hit a
32-month high, while Australia's S&P/ASX200 .ASXJO gained 0.7%
for the session. Mainland Chinese markets will remain closed for
the holidays until Thursday.
The positive sentiment was also extended to Bitcoin which
flirted with breaking through the $50,000 barrier.
Bitcoin was trading at $49,323.56 BTC=BTSP in the Asian
afternoon trading session, slightly below its record high of
$49,715 hit on Sunday. JPMorgan Private Bank head of Asia investment strategy Alex
Wolf said the ongoing coronavirus vaccine rollout was giving
investors confidence that global growth would be protected in
2021.
"This is a positive factor that we are coming into the
process of economic normalisation," Wolf said.
Ord Minnett advisor John Milroy said while share markets
were positive investors were becoming wary of the future risk of
inflation due to central bank and government stimulus programmes
in place around the world.
"There is a clear sense with rates staying low for some time
yet and investor appetite for equities staying strong we will
likely see markets hold up for some time yet," Milroy told
Reuters.
"Gaining traction is the thought that inflation could rise
much faster and sooner than the Fed is currently thinking. Then
if they do raise rates to combat it what happens to equity
markets and of course bond markets."
The bullish view on the economy lifted bond yields, with the
10-year U.S. Treasuries gaining 5 basis points to 1.24%
US10YT=RR in Asian trade, its highest since late March.
Investors are looking to the minutes from the U.S. Federal
Reserve's January meeting, due to be published on Wednesday, for
confirmation of its commitment to maintain its dovish policy
stance over the near future. That in turn is set to keep a tab
on bond yields.
But some analysts say investors should keep a wary eye on
bond yields.
"If U.S. bond yields keep rising, that could start to
unsettle stocks," said Masahiro Ichikawa, chief strategist at
Sumitomo Mitsui DS Asset Management.
Wolf said JPMorgan's private bank forecast U.S. 10-year
yields could reach 1.5% by the end of 2021, as investors again
banked on further economic stimulus which could help global
growth prospects.
"An increase in yields is not a large concern for the rest
of the world. It's the pace of the increase that tends to matter
most from an Asian perspective. If there's a rapid repricing
then that can have a negative effect for emerging markets," he
said.
U.S. President Joe Biden is pushing ahead with his plan to
pump an extra $1.9 trillion in stimulus into the economy, in a
further boost to market sentiment.
U.S. crude futures CLc1 were trading up 1.1% at $60.11 per
barrel.
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Global asset performance http://tmsnrt.rs/2yaDPgn
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