GLOBAL MARKETS-Asian stocks poised for first monthly loss since Oct on bond rout

(Rewrites throughout with Asian shares, analyst comments,
updated levels)
* MSCI Asia ex-Japan up on Wednesday on economic recovery
hopes
* Index on track for its first monthly loss since October
2020
* U.S. dollar hovers near one-year highs against Japanese
yen
* Oil ticks higher, gold edges down

By Swati Pandey
SYDNEY, March 31 (Reuters) - Asian stocks were on track for
their first monthly loss since last October though markets were
up on Wednesday and the U.S. dollar stood tall as investors
focused on growing signs of a sure-footed global economic
recovery.
MSCI's broadest index of Asia-Pacific shares outside of
Japan .MIAPJ0000PUS climbed for a fourth consecutive day to a
one-week high of 682.36 points. The index, last up 0.4%, was
still a fair distance away from an all-time peak of 745.89
touched just last month.
For the month so far, the index is down 1.6% to be on track
for its first loss in five months. It is also poised for its
smallest quarterly gain since a 21% fall in March 2020 when the
coronavirus pandemic brought the world to a standstill.
As many countries rolled out the coronavirus vaccine,
investors wagered on a quicker-than-anticipated economic
recovery by dumping safe haven bonds, triggering a sudden and
massive jump in yields that in-turn spooked equity investors.
Technology shares were at the receiving end of the so-called
"term premium tantrum" as they were seen as being vulnerable to
rising interest rates.
Analysts at Blackrock said that view was "too simplistic",
adding they still liked tech stocks.
Wall Street ended lower overnight as higher yields weighed
on tech shares, but financial stocks rose helped by signs the
fallout from the Archegos meltdown would be largely
contained. "Tech is a diverse sector and the driver of higher yields
matters more than the rise itself," Blackrock said in a note to
clients.
"Our new nominal theme implies central banks will be slower
to raise rates to curb inflation than in the past, supporting
our pro-risk stance and preference for tech."
Over a 6-12 month period, Blackrock is "overweight" equities
in the United States, Emerging Markets, Asia ex-Japan and UK. It
is "underweight" U.S. Treasuries, expecting a nominal increase
in yields.
"The 'term premium tantrum' mostly reflects investors
requiring higher compensation for the now greater risks to
portfolios presented by government bonds and inflation, in our
view," Blackrock said.
"This makes equities even more appealing than bonds in a
multi-asset context – and suggests any further sell-offs in tech
may present opportunities."
Sentiment in Asia got a further lift from data showing
China's factory activity expanded at a faster-than-expected pace
in March while the country's services sector surged too.
Despite the strong data, however, Chinese shares started in
the red with the blue-chip index .CSI300 off 0.5%.
Japan's Nikkei .N225 slipped 0.4% as the country's
industrial output fell in February due to declines in the
production of cars and electrical machinery.
Australia's benchmark index .AXJO jumped 1.7%, New Zealand
rose 0.3% while South Korea's KOSPI index .KS11 added 0.75%.
E-mini futures for the S&P 500 ESc1 rose 0.15% in early
Asian trading.
There were some jitters over news over the soured bets at
New York-based Archegos Capital Management, which had left
global banks that financed its trades nursing at least $6
billion in losses.
In foreign exchange markets, currencies were mostly a sea of
red against the U.S. dollar which hit a one-year high of 110.48
against the yen as investors bet that massive fiscal stimulus
and aggressive vaccinations will boost the U.S. economic
recovery. FRX/ JPY=
The dollar is on track for a third straight monthly rise
against the yen and its biggest since end-2016.
The dollar index =USD held above 93 after surging as high
as 93.357 on Tuesday. It has climbed from close to 90 at the
start of March, on course for its best month since 2016.
Australia's dollar AUD= edged up to $0.7610, consolidating
after its drop to $0.7564 last week, the lowest level seen this
year.
In commodities, Brent crude LCOc1 rose 33 cents, or 0.5%,
to $64.47 a barrel while U.S. crude CLc1 added 12 cents
to$60.68 barrel.
Gold prices slipped a touch to 1,682.15 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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