GLOBAL MARKETS-Asia shares try to rally, retail crowd catches silver bug

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan swings higher, Nikkei tries to bounce
* S&P 500 futures ease on doubts over vaccine rollouts
* Retail crowd turns gaze on silver, jumps to 6-mth high
* Dollar supported by cautious mood, bonds brace for supply

By Wayne Cole
SYDNEY, Feb 1 (Reuters) - Asian shares tried to rally on
Monday as Wall Street continued to struggle with doubts about
vaccine rollouts and economic recovery, while silver surged as
newly empowered retail investors turned speculative eyes to
precious metals.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS recouped early losses to rise 0.7%, bouncing
after four straight sessions of losses.
Japan's Nikkei .N225 added 0.8%, after shedding almost 2%
on Friday, while Chinese blue chips .CSI300 gained 0.5% as the
country's central bank injected more cash into money markets.
Wall Street indexes pared their losses but futures for the
S&P 500 ESc1 were still off 0.3%, while NASDAQ futures NQc1
fell 0.4%.
Dealers were also warily awaiting new developments in the
headline-grabbing battle between retail investors and funds that
specialise in shorting stocks.
U.S. hedge funds bought and sold the most stock in more than
10 years amid wild swings in GameStop Corp GME.N , according to
an analysis by Goldman Sachs Inc. Talk was that silver was the new target for the retail crowd
as the metal jumped 5% to a six-month high XAG= . Yet many analysts see this entertaining episode as a
sideshow compared to signs of a loss of momentum in the United
States and Europe as coronavirus lockdowns bite.
Indeed, two surveys from China showed factory activity
slowed in January as restrictions took a toll in some regions.
Neither was the news on vaccine rollouts positive,
especially given doubts about whether they will work on new
COVID strains.
"It is these considerations, not what is happening to a
video gamer retailer day to day, that has weighed on risk
assets," said John Briggs, global head of strategy at NatWest
Markets. "So much of the market's valuations, risk in
particular, is premised on the fact we can see a light at the
end of the COVID tunnel."
Doubts have also emerged about the future of President Joe
Biden's $1.9 trillion relief package, with 10 Republican
senators urging a $600 billion plan. The jitters in stocks caused only a brief ripple in bonds
with Treasury yields actually rising late last week, perhaps a
refection of the tidal wave of borrowing underway.
A record $1.11 trillion of gross Treasury issuance is slated
for this quarter, up from $685 billion the same time last year.
On Monday, U.S. 10-year yields US10YT=RR held at 1.077%
and near the recent 10-month top of 1.187%.
Higher yields combined with the more cautious market mood
have seen the safe-haven dollar steady above its recent lows.
The dollar index stood at 90.535 =USD , having bounced from a
trough of 89.206 hit early in January.
The euro idled at $1.2129 EUR= , well off its recent peak
at $1.2349, while the dollar held firm at 104.70 yen JPY= .
Gold followed silver higher to $1,852 an ounce XAU= , but
has repeatedly stalled at resistance around $1,875. GOL/
Global demand concerns kept oil prices in check. U.S. crude
CLc1 was flat at $52.20 a barrel, while Brent crude LCOc1
futures edged up 10 cents to $55.14. O/R

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