GLOBAL MARKETS-Asian shares near record highs as U.S. stimulus plans offset virus woes

* Asian stock markets : https://tmsnrt.rs/2zpUAr4

By Swati Pandey
SYDNEY, Jan 25 (Reuters) - Asian shares climbed to near
all-time highs on Monday as concerns over rising COVID-19 cases
and delays in vaccine supplies were eclipsed by optimism of a
$1.9 trillion fiscal stimulus plan to help revive the U.S.
economy.
Sentiment in the region was also boosted by a report that
China had surpassed the United States to be the largest
recipient of foreign direct investment in 2020 with $163 billion
in inflows. Futures markets also pointed to firmer starts elsewhere.
E-mini futures for the S&P 500 ESc1 rose 0.37%, futures for
eurostoxx 50 STXEc1 as well as London's FTSE were up 0.3% each
while those for Germany's DAX FDXc1 added 0.4%.
"The FDI story has definitely lifted China and its near
neighbours today, blowing an economic recovery tailwind into
geographically adjacent markets," said OANDA's Singapore-based
market analyst Jeffery Halley.
"Looking ahead, equities will find more meaningful reactions
from the progress or not of the Biden stimulus package, and the
level of dovishness displayed by the Federal Reserve at their
FOMC meeting this week."
Global equity markets have scaled record highs in recent
days on bets COVID-19 vaccines will start to reduce the
infection rates worldwide and on a stronger U.S. economic
recovery under President Joe Biden.
Still, investors are also wary about towering valuations
amid questions over the efficiency of the vaccines in curbing
the pandemic and as U.S.lawmakers continue to debate a
coronavirus aid package. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose to 726.46, within kissing distance of last
week's record high of 727.31.
The benchmark is up nearly 9% so far in January, on track
for its fourth straight monthly rise.
Japan's Nikkei .N225 rebounded from falls in early trading
to be up 0.7%.
Australian shares .AXJO added 0.4% after the country's
drug regulator approved the Pfizer/BioNTech COVID-19 vaccine
with a phased rollout likely late next month. Chinese shares rose, with the blue-chip CSI300 index
.CSI300 up 1.1%. Hong Kong's Hang Seng index .HSI leapt
nearly 2% led by technology stocks.
All eyes are on Washington DC as U.S. lawmakers agreed that
getting the COVID-19 vaccine to Americans should be a priority
even as they lock horns over the size of the U.S. pandemic
relief package. Financial markets have been eyeing a massive package though
disagreements have meant months of indecision in a country
suffering more than 175,000 COVID-19 cases a day with millions
out of work.
Global COVID-19 cases are inching towards 100 million with
more than 2 million dead. Hong Kong locked down an area of the Kowloon peninsula on
Saturday, the first such measure the city has taken since the
pandemic began.
Reports the new UK COVID variant was not only highly
infectious but perhaps more deadly than the original strain also
added to worries. In the European Union, political leaders expressed
widespread dismay over a hold-up by AstraZeneca AZN.L and
Pfizer Inc PFE.N in delivering promised doses, with Italy's
prime minister lashing out at the vaccine suppliers, saying
delays amounted to a serious breach of contractual obligations.
On Friday, the Dow .DJI fell 0.57%, the S&P 500 .SPX
lost 0.30% and the Nasdaq .IXIC added 0.09%. The three main
U.S. indexes closed higher for the week, with the Nasdaq up over
4%.
Jefferies analysts said U.S. stock markets looked overvalued
though they still remained bullish.
"For the stock market to have a real nasty unwind, rather
than just a bull market correction, there needs to be a
catalyst," analyst Christopher Wood said.
"That means either an economic downturn or a material
tightening in Fed policy," Wood said, adding neither was likely
to occur in a hurry.
In currencies, major pairs were trapped in a tight range as
markets awaited the Fed's Wednesday meeting.
The dollar index =USD eased to 90.073, with the euro
EUR= at $1.2181, while sterling GBP= was last a tad firmer
at $1.3721.
The Japanese yen JPY= was a shade weaker at 103.69 per
dollar.
In commodities, Brent LCOc1 gave up early losses to be
last flat at $55.41 a barrel and U.S. crude CLc1 rose 3 cents
to $52.30.
Gold was flat at $1,852.9 an ounce. XAU=

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(Editing by Shri Navaratnam and Jacqueline Wong)