GLOBAL MARKETS-Asian shares hit all-time highs, oil buoyant

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI Asia ex-Japan hits record high, Nikkei climbs
* Oil prices at highest since January 2020
* Risk appetite higher on virus vaccine rollout, US stimulus
* Currency market action muted; Bitcoin comes off record
highs
*

By Swati Pandey
SYDNEY, Feb 15 (Reuters) - Asian shares advanced to record
highs on Monday and oil rose to a more than one year peak as
successful coronavirus vaccine rollouts globally raise hopes of
a rapid economic recovery amid new fiscal aid from Washington.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS jumped 0.4% to 736.4.
Japan's Nikkei .N225 climbed 1.3%, despite data showing
the country's recovery from its worst postwar recession slowed
in the fourth quarter. Australia's benchmark index .AXJO was up 1%.
E-mini futures for the S&P 500 ESc1 were up 0.2% in early
Asian trading. U.S. stock markets will be closed on Monday for
the Presidents Day holiday.
The highlight of the week will probably be minutes of the
U.S. Federal Reserve's January meeting, where policymakers
decided to leave rates unchanged.
Data on inflation is due from the UK, Canada, and Japan
while Friday will see major economies including the United
States release the preliminary February purchasing managers'
indices (PMI).
While economists expect inflation to stay benign for some
while yet, the so called "reflation trade" has gathered steam in
recent days largely led by coronavirus vaccines and hopes of
massive fiscal spending under U.S. President Joe Biden.
Biden pushed for the first major legislative achievement of
his term, turning to a bipartisan group of local officials for
help on his $1.9 trillion coronavirus relief plan. "In our view, as long as the rise (in inflation) is gradual,
equity markets can continue to do well. However, unruly moves
would certainly hurt investor sentiment," said Esty Dwek, head
of global market strategy, Natixis Investment Managers
Solutions.
"Credit spreads have tightened sharply already, but they
still have room to absorb some higher yields, making us more
comfortable with credit risk than interest rate risk," Dwek
added.
"Commodities would be beneficiaries of an inflationary
cycle, but they can still continue to recover without high core
inflation as economies reopen and demand picks up."
Oil prices climbed to the highest since January 2020 on
hopes U.S. stimulus will boost the economy and fuel demand.
O/R
Brent crude LCOc1 rose 61 cents to $63.04 a barrel. U.S.
crude oil CLc1 gained 83 cents to $60.03.
On Friday, the S&P 500 and Nasdaq set record closing highs.
The Dow .DJI finished 0.1% higher at 31,458.4 points, the S&P
500 .SPX gained 0.5% to 3,934.83 and the Nasdaq .IXIC added
0.5% to 14,095.47. .N
Action in currencies was muted.
The dollar was slightly higher against the Japanese yen at
105.07 JPY= while the euro was flat at $1.2119 and the British
pound GBP= was up 0.1% at $1.3868. The risk sensitive
Australian and New Zealand dollars were unchanged. AUD= NZD=
That left the dollar index =USD steady at 90.426.
Bitcoin BTC=BTSP was barely changed in early Asian trading
at $48,722, slightly below a record high of $49,000. It posted
gains of roughly 20% in a milestone week marked by the
endorsement of major firms such as Elon Musk's Tesla TSLA.O .

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