* MSCI AxJ up 0.3% to highest since January
* MYR, KRW at strongest since March
* Bank of England, RBI, U.S. fiscal deal eyed
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Chris Prentice
SINGAPORE/WASHINGTON, Aug 6 (Reuters) - The dollar
languished and just about everything else rose on Thursday, as
markets took patchy U.S. economic data as a harbinger of ever
more stimulus and brinkmanship on Capitol Hill as a sign that a
deal on a new U.S. stimulus package is close.
Following Wall Street's lead, MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS extended the
week's rally by 0.3% to a fresh six-and-a-half-month high.
Japan's Nikkei index .N225 was steady and Asian currencies
were on the march, with the Australian dollar AUD=D3 gaining
to around 72 U.S. cents, and the Korean won KRW= and Malaysian
ringgit MYR= touching their strongest since March.
S&P 500 futures ESc1 firmed, oil rose and gold XAU=
inched back toward a record high hit overnight.
"If it's got a pulse, people will buy it now," said Rob
Carnell, Asia-Pacific head of research at ING in Singapore.
He said it was clear the global recovery is not a "V-shaped"
rebound, but markets are focused almost completely on the help
that fiscal and monetary policymakers are providing, even if the
next U.S. government package is likely to reduce spending from
current levels.
"Short of apocalyptic news, we are going to see these
markets carrying on going up because central banks are printing
and printing (money) and it simply has to go somewhere," Carnell
said.
Top congressional Democrats and White House officials
appeared to harden their stances on the new coronavirus relief
plan on Wednesday, with few hints of compromise or that an
unemployment benefit as generous as $600 a week could continue.
But investors interpreted Senate Republican Roy Blunt's
remark that "if there's not a deal by Friday, there won't be a
deal," as a sign there would be a compromise. Federal Reserve policymakers also encouraged lawmakers to
provide more aid. And in any case, plenty is on the way - with a modest
selloff in the bond market after the U.S. Treasury flagged
borrowing a gigantic $947 billion this quarter, about $270
billion more than it previously estimated. The yield on benchmark 10-year U.S. government debt
US10YT=RR rose 3 basis points and was steady at 0.5445% on
Thursday. US/
EARNINGS SURPRISE
Positive sentiment on Wall Street was further bolstered by
company earnings, with a surprise quarterly profit from Walt
Disney Co DIS.N and a slew of upbeat healthcare results.
The Nasdaq .IXIC minted a new record peak and closing high
while the S&P 500 .SPX was up 0.6% and is less than 2% below
its record high hit in February.
In Asia, it was Singaporean bank DBS DBSM.SI bringing some
cheer, with a shallower-than-feared plunge in second-quarter
profit, helping shares in Southeast Asia's biggest lender gain.
Investors are watching a crucial Indian central bank meeting
later on Thursday, with around two thirds of economists polled
by Reuters expecting an easing in interest rates. U.S. jobs data due at 1230 GMT provides the next read on the
pace of hiring, while sterling also traded cautiously ahead of a
Bank of England policy decision due at 0600 GMT.
No changes are expected but some traders are looking for a
dovish tilt in language. "There is still a bit of uncertainty around whether the Bank
will eventually move the policy rate into negative territory,"
said Rodrigo Catril, a senior FX strategist at National
Australia Bank.
"Pricing expectations are at 0.05% (compared with a current
rate at 0.1%), so some in the market are betting on a move."
Sterling GBP= last sat 0.1% firmer at $1.3127 and other
majors were steady - with the euro EUR=EBS at $1.1871 and the
yen JPY= at 105.55 per dollar. FRX/
In commodity markets, Brent crude LCOc1 inched back toward
a five-month high touched overnight, rising 0.1% to $45.23 per
barrel and U.S. crude CLc1 was steady at $42.15 per barrel.
O/R
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