GLOBAL MARKETS-Asian stocks gain, yuan soars as traders bet on U.S. stimulus, again

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Equities shake off slow start to post solid gains
* Investors eye chances for more U.S. stimulus
* Yuan continues recent bull run against dollar
* U.S. presidential election looms large on horizon

By Stanley White and Jessica DiNapoli
TOKYO/NEW YORK, Oct 21 (Reuters) - Asian shares and U.S.
stock futures rose on Wednesday as renewed hopes for a new round
of U.S. stimulus drew money into equities from government debt.
European equities looked set to follow. Euro Stoxx 50
futures STXEc1 were up 0.25%, German DAX futures FDXc1 rose
0.28%, and FTSE futures FFIc1 gained 0.18%.
U.S. stock futures EScv1 rose 0.71%.
The White House and Democrats in the U.S. Congress moved
closer to agreement on a new coronavirus relief package on
Tuesday as President Donald Trump said he was willing to accept
a large aid bill despite opposition from his own Republican
Party.
Negotiations will continue on Wednesday, an aide to top U.S.
Democrat Nancy Pelosi said. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.51%, while Tokyo shares .N225 gained
0.42%.
Australian stocks .AXJO edged up by 0.09%, but shares in
China .CSI300 fell 0.33%.
The yuan CNY=CFXS surged to the strongest level against
the dollar in more than two years on growing optimism about
China's economy and speculation that a victory for U.S. Democrat
presidential candidate Joe Biden next month will lead to better
Sino-U.S. ties.
Benchmark U.S. Treasury yields hit a four-month high and the
yield curve steepened on expectations for more U.S. fiscal
spending, but some investors remain cautious about the chances
of a deal before the U.S. presidential election on Nov. 3.
"More stimulus means stocks rise and yields rise," said
Junichi Ishikawa, senior foreign exchange strategist at IG
Securities in Tokyo.
"Without stimulus, everything goes into reverse. U.S.
President Donald Trump is attacking Biden before the election,
which could impact stimulus negotiations. However, it is also
damaging for the Democrats if they continue to hold out."
On Wall Street, shares of Google parent company Alphabet
GOOGL.O rose despite an antitrust lawsuit against it by the
U.S. Justice Department. Netflix, however, reported disappointing earnings, leading
its shares to fall 6% after trading hours.
The Dow Jones Industrial Average .DJI ended up 0.40%.. The
S&P 500 .SPX rose 0.47%, and the tech-heavy Nasdaq Composite
.IXIC rose 0.33%. .N
The onshore yuan CNY=CFXS jumped to 6.6444 per dollar, the
strongest since July 2018. Yuan bulls have been encouraged by
recent signs from the People's Bank of China that it is more
comfortable with currency appreciation, with exports remaining
strong. The U.S. dollar hit a one-month low against a basket of
major currencies =USD as investors awaited the outcome of the
fiscal stimulus talks and as coronavirus cases spiked in Europe.
Benchmark 10-year U.S. Treasury yields hit a four-month high
of 0.8330% and the yield curve US2US10=TWEB reached the
steepest level in more than four months on hopes lawmakers could
agree on a stimulus package. Oil prices fell on Wednesday after a surprise climb in U.S.
crude stockpiles added to concerns about a global supply glut.
Brent crude futures LCOc1 fell 0.49% to $42.95 a barrel
while U.S. crude futures CLc1 slipped by 0.43% to $41.52 per
barrel.

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