GLOBAL MARKETS-Asian stocks hit fresh records on hopes for global recovery

* MSCI Asia ex-Japan +1%; Nikkei hits 30-year high
* Hopes for vaccines, U.S. stimulus turbocharge sentiment
* Dollar rises on recovery expectations

By Andrew Galbraith and Imani Moise
SHANGHAI/NEW YORK, Jan 8 (Reuters) - Asian shares rose to
record highs on Friday, with Japan's Nikkei hitting a
three-decade peak as investors looked beyond rising coronavirus
cases and political unrest in the United States to focus on
hopes for an economic recovery later in the year.
The upbeat mood came after Wall Street hit record highs on
Thursday while bond prices fell as markets bet a new
Democratic-controlled government would lead to heavy spending
and borrowing to support the U.S. economic recovery.
"Market participants are fairly optimistic with how things
are progressing, whether it's in the political landscape,
particularly of course in the United States the potential for
more stimulus certainly is a boon to the economy," said James
Tao, analyst at CommSec in Sydney. "You've got the vaccines now
coming through, getting the approvals - it's all happening
pretty quickly," he added.
The buoyant mood lifted MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS up 1%,
touching a record high.
Seoul's Kospi .KS11 led the way, charging 2.8% higher,
also to a record high. In Tokyo, the Nikkei .N225 added 1.73%,
hitting its highest level since August 1990.
Hong Kong's Hang Seng .HSI rose 1.2% despite reports the
Trump administration was considering banning U.S. entities from
investing in an expanded list of Chinese companies in the waning
days of the presidency, and despite the delisting of major
Chinese telecoms firms from FTSE Russell and MSCI indexes.
Chinese blue-chip shares .CSI300 were flat after recent
gains and Australia's S&P/ASX 200 .AXJO rose only 0.48% after
the state of Queensland enforced a three-day lockdown in its
capital Brisbane following the discovery of a case of the more
contagious UK variant of COVID-19. On Thursday, the Dow Jones Industrial Average .DJI rose
0.69%, the S&P 500 .SPX gained 1.48% and the Nasdaq Composite
.IXIC added 2.56% - with all three indexes finishing at record
closing highs.
The gains follow expectations that Democratic control of
both U.S. houses of Congress will help the party of
President-elect Joe Biden push through larger fiscal stimulus
and comes despite political unrest in Washington DC.
U.S. government officials have begun weighing removing
President Donald Trump from office before Biden's inauguration
date of Jan. 20, after Trump supporters stormed the U.S. Capitol
building. Rising risk appetite weighed on bonds, pushing benchmark
U.S. yields higher. Ten-year notes US10YT=RR yielded 1.0998%
on Friday, up from 1.017% on Thursday. The 30-year bond
US30YT=RR yielded 1.8817%, up from 1.845% Thursday.
The dollar also strengthened on hopes of a meaningful
economic recovery later this year.
The dollar index =USD edged up against a basket of
currencies to 89.875 with the euro EUR= down 0.11% to $1.2256.
The greenback was up by a hair against the yen to 103.84.
JPY=
"We're sure to see a synchronised global recovery in the
second half of this year," said ING analyst Carsten Brzeski.
"Right now, there's lots of concern about the virus and
noise surrounding the vaccine. But we need to take a slightly
longer view."
Cryptocurrency bitcoin BTC=BTSP fared less well, dropping
more than 5% to $37,377 after topping $40,000 for the first time
on Thursday on high demand from institutional and retail
investors. Market watchers have said a pullback is likely
following its recent run-up. In commodity markets, oil traders continued to focus on
Saudi Arabia's pledge to deepen production cuts. Brent crude LCOc1 was up 0.39% at $54.59 a barrel after
touching $54.90, a high not seen since before the first COVID-19
lockdowns in the West. U.S. West Texas Intermediate (WTI) CLc1
rose 0.45% to $51.06.
Spot gold XAU= was about 0.1% lower at $1,910.87 per ounce.

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