GLOBAL MARKETS-Asian stocks set for soft start, dollar mostly steady

* Dollar steady in advance of Fed meeting Tuesday-Wednesday
* Global stocks mixed on uncertain outlook for U.S. stimulus
* Europe shares tumble on expected weak German, French GDP

By Alwyn Scott
NEW YORK, Jan 25 (Reuters) - Asian stocks came under
pressure on Tuesday as worries about U.S. stimulus and surging
coronavirus infections led to a mixed Wall Street session, while
the dollar consolidated overnight gains.
The choppy trade reflected concerns about new strains of the
deadly virus, along with uncertainty about the $1.9 trillion
U.S. fiscal stimulus plan that has hit opposition from
Republicans in Congress.
Those factors tempered earlier optimism stoked by the
roll-out of vaccines and anticipation that new U.S. stimulus
would give the world economy a much-needed fiscal shot in the
arm.
Jarrod Kerr, chief economist at Kiwibank in Wellington, New
Zealand said equities also were now taking a breather after a
strong bull run last week, but noted sentiment was still upbeat.
"Risk appetite has clearly improved," Kerr said. "Central
banks and governments need to keep their foot on the
accelerator."
E-mini futures for the S&P 500 EScv1 were flat early in
the Asian day. Japan's Nikkei .N225 opened down 0.4% and New
Zealand's .NZ50 was 0.5% lower. The Australian dollar rose
0.04% versus the greenback at $0.771. Australian stock markets
were closed for a national public holiday.
Fourth-quarter GDP data for the United States, Germany and
France due out this week may cool sentiment. U.S. policymakers
are expected to keep the monetary spigot open when the Federal
Reserve's Federal Open Market Committee meets on Tuesday and
Wednesday.
Wall Street stocks were mixed on Monday with the Nasdaq
index .IXIC adding 0.69% and hitting a record high on hopes of
bumper earnings later this week from mega-cap technology
companies. The S&P 500 .SPX gained 0.36%, however, the Dow
Jones Industrial Average index .DJI slipped 0.12%. .N .N/C
Earlier, European shares closed at two-week lows as a slump
in German business morale underscored the damage from tighter
COVID-19 restrictions.
The pan-European STOXX 600 index .STOXX reversed early
gains and finished 0.8% lower. The German DAX .GDAXI fell
1.7%, France CAC 40 .FCHI was down 1.6% and the UK's FTSE 100
.FTSE declined 0.8%.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 nations, rose 0.2%.
All eyes were on Washington as U.S. lawmakers agreed that
getting COVID-19 vaccines to Americans should be a priority even
as they locked horns over the size of the 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.
"The immediate question now is when stimulus aid will be
approved and how much?" asked Christopher Grisanti, chief equity
strategist at MAI Capital Management.
The dollar advanced to a near one-week high against a basket
of currencies, as volatility in stock markets around the globe
sapped investors' appetite for riskier currencies.
The dollar index .DXY , which tracks the greenback versus a
basket of six currencies, rose 0.12 points or 0.1%, to 90.358.
The euro EUR= was last down 0.3% at $1.2140.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>