* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asia ex-Japan stocks highest since Feb, led by China
* Some U.S. states delay reopenings as pandemic rages
* Major currencies range-bound, gold near highs
By Wayne Cole
SYDNEY, July 6 (Reuters) - Asian shares scaled four-month
peaks on Monday as investors counted on super-cheap liquidity
and fiscal stimulus to sustain the global economic recovery,
even as surging coronavirus cases delayed re-openings across the
United States.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS climbed 1% to its highest since February.
Eyes were on Chinese blue chips .CSI300 , which jumped 3%,
on top of a 7% gain last week, to their loftiest level in five
years. Even Japan's Nikkei .N225 , which has lagged with a soft
domestic economy, managed a rise of 1.3%.
"We think there is a case for raising tactical allocation on
Asian equities in the context of global equity portfolios,"
wrote analysts at Nomura in a note.
"We see a number of catalysts that could drive Asia ex-Japan
(AeJ) equities' outperformance over U.S. equities in the near
term," they added. "Better COVID-19 trends and mobility data in
economies/markets that dominate the AeJ index should translate
into faster economic recovery vs the U.S."
E-Mini futures for the S&P 500 ESc1 also firmed 0.8%,
while EUROSTOXX 50 futures STXEc1 added 1.8% and FTSE futures
FFIc1 1.5%.
Most markets had gained ground last week as a raft of
economic data from June beat expectations, though the resurgence
of coronavirus cases in the United States is clouding the
future.
In the first four days of July alone, 15 states have
reported record increases in new cases of COVID-19, which has
infected nearly 3 million Americans and killed about 130,000,
according to a Reuters tally. "It is very clear that the U.S. never got the COVID outbreak
under control the way that other countries did. By reopening the
economy too soon, we have seen a frightening increase in the
pace of new cases," said Robert Rennie, head of financial market
strategy at Westpac.
Analysts estimate that reopenings impacting 40% of the U.S.
population have now been wound back.
"So markets will have to climb a wall of worry in July as
economic activity likely softens from the V-shaped recovery seen
over recent months," warned Rennie. "We must remember too that
U.S. and China relations are deteriorating noticeably."
Two U.S. aircraft carriers conducted exercises in the
disputed South China Sea on Saturday, the U.S. Navy said, as
China also carried out military drills that have been criticised
by the Pentagon and neighbouring states. The risks, combined with unceasing stimulus from central
banks, have kept sovereign bonds supported in the face of better
economic data, with U.S. 10-year yields US10YT=RR holding at
0.67% and well off the June top of 0.959%.
Analysts at Citi estimate global central banks are likely to
buy $6 trillion of financial assets over the next 12 months,
more than twice the previous peak.
Major currencies have been largely range bound with the
dollar index at 97.189 =USD having spent an entire month in a
snug band of 95.714 to 97.808.
The dollar was a shade firmer on the yen at 107.72 JPY= on
Monday, while the euro edged up to $1.1271 EUR= .
In commodity markets, gold has benefited from super-low
interest rates across the globe as negative real yields for many
bonds make the non-interest paying metal more attractive.
Spot gold traded at $1,772 per ounce XAU= just off last
week's peak of $1,788.96. GOL/
Oil prices were mixed in early trade with Brent crude
LCOc1 futures up 19 cents at $42.99 a barrel, while U.S. crude
CLc1 eased 23 cents to $40.42 amid worries the surge in U.S.
coronavirus cases would curb fuel demand. O/R
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(Editing by Sam Holmes)