GLOBAL MARKETS-Asian shares set to rise on broader U.S. rally, dollar gains

* China, Japan services activity in view
* Wall Street climbs on defensive share gains
* ADP falls short of expectations
* Dollar edges away from two-year lows

By Alwyn Scott
NEW YORK, Sept 2 (Reuters) - Asian equities were set to open
higher on Thursday after stronger U.S. economic data and the
prospect of additional U.S. stimulus prompted sharp, and
broader, gains on Wall Street, while the dollar extended its
upward move.
Investors in Asia await readings on services activity in
China and Japan, which are expected to show continued expansion
in China, and possibly a move out of contraction for Japan.
Australian S&P/ASX 200 futures YAPcm1 rose 0.69% in early
trading.
Japan's Nikkei 225 futures NKc1 added 0.04%.
Hong Kong's Hang Seng index futures .HSI HSIc1 lost
0.15%.
E-mini futures for the S&P 500 EScv1 fell 0.10%.
The positive sentiment will be helped by the U.S. shift
toward lagging sectors.
"Equity bulls will love the fact that the (U.S.) market was
up quite strongly" on Wednesday, rather than selling off on
higher real bond yields and a stronger dollar, said Chris
Weston, Head of Research at the Pepperstone Group.
"People just used that to reweight toward value areas of the
market," he said. "Value effectively took over."
On Wall Street, the three major equity indexes moved higher,
but gains were led by defensive sectors such as utilities
.SPLRCU as the high-flying tech sector .SPLRCT paused.
New data on Wednesday showed U.S. private employers hired
fewer workers than expected for a second straight month in
August, suggesting that the labor market recovery was slowing as
the coronavirus pandemic persists and as government money to
support workers and employers dries up. Sluggish job growth also emerged in the Federal Reserve's
Beige Book, which showed furloughed workers increasingly being
laid off permanently in some parts of the United States.
A separate report showed factory orders rose more than
expected in July, pointing to continued improvement in the
manufacturing sector. The mixed data may have added to expectations for Washington
to reach a deal on new stimulus to counteract the pandemic.
The Dow Jones Industrial Average .DJI rose 454.84 points,
or 1.59%, to 29,100.5, the S&P 500 .SPX gained 54.19 points,
or 1.54%, to 3,580.84 and the Nasdaq Composite .IXIC added
116.78 points, or 0.98%, to 12,056.44. The climb marked the
biggest daily percentage gain for the S&P since July 6.
The dollar strengthened against a basket of major currencies
for a second straight day from lows of more than two years,
while the euro pulled back from the key $1.20 level reached in
the prior session. The dollar index =USD rose 0.454%, with the euro EUR=
down 0.02% to $1.1851.
The Japanese yen weakened 0.03% versus the greenback at
106.22 per dollar, while Sterling GBP= was last trading at
$1.335, down 0.01% on the day.
Benchmark 10-year notes US10YT=RR last traded to yield
0.6477%.
In commodities, oil retreated as weekly government data
showed U.S. gasoline demand fell in the latest week, an
indication that economic recovery from the pandemic may be
slower than expected. U.S. crude CLc1 settled down 2.92% at $41.51 per barrel
and Brent LCOc1 was at $44.43, down 2.52% on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Rouble tumbles https://tmsnrt.rs/31Rndf5
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>