GLOBAL MARKETS-Shares falter as tech skids, yields and oil ring inflation alarm

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Asia shares lose gains as Nasdaq futures slide
* Senate passes $1.9 trln stimulus, set to be signed in days
* Dollar gains on euro, yen as U.S. yields race ahead
* Oil prices jump to 1-year high as Saudi facilities
attacked

By Wayne Cole
SYDNEY, March 8 (Reuters) - Share markets turned mixed on
Monday as the U.S. Senate passage of a $1.9 trillion stimulus
bill augured well for faster global economic growth, but also
put fresh pressure on Treasuries and tech stocks with lofty
valuations.
The upbeat economic news continued as China's exports surged
155% in February compared with a year earlier when much of the
economy shut down to fight the coronavirus. "With the Senate's passage, we expect growth momentum to
accelerate and forecast global GDP growth will surge to a 7.5%
annualised rate in the middle quarters of the year," said
JPMorgan economists in a note.
"Every $1 trillion of fiscal stimulus adds around $4-$5 to
EPS, implying 6-7% upside for the remainder of the year."
However, analysts also expected a sharp acceleration in
inflation, stoked in part by the latest spike in oil prices,
which was pushing up bond yields and stretching equity
valuations, particularly in the high tech space.
That saw Nasdaq futures NQc1 reverse early gains to slip
1.0%, dragging S&P 500 futures ESc1 down 0.2%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS followed with a fall of 0.5%, while Chinese blue
chips .CSI300 shed 0.9%.
Japan's Nikkei .N225 clung to a gain of 0.2%, while
EUROSTOXX 50 futures STXEc1 were still up 0.8% and FTSE
futures FFIc1 0.9%%.
Equity investors had taken heart from U.S. data showing
nonfarm payrolls surged by 379,000 jobs last month, while the
jobless rate dipped to 6.2% in a positive sign for incomes,
spending and corporate earnings. U.S. Treasury Secretary Janet Yellen tried to counter
inflation concerns by noting the true unemployment rate was
nearer 10% and there was still plenty of slack in the labour
market.
Yet yields on U.S. 10-year Treasuries US10YT=TWEB still
hit a one-year high of 1.625% in the wake of the data, and stood
at 1.59% on Monday. Yields increased a hefty 16 basis points for
the week, while German yields actually dipped 4 basis points.
The European Central Bank meets on Thursday amid talk it
will protest the recent rise in euro zone yields and perhaps
mull ways to restrain further increases.
The diverging trajectory on yields boosted the dollar on the
euro, which fell away to a three-month low of $1.1892 EUR= ,
and was last pinned at $1.1904.
BofA analyst Athanasios Vamvakidis argued the potent mix of
U.S. stimulus, faster reopening and greater consumer firepower
was a clear positive for the dollar.
"Including the current proposed stimulus package and further
upside from a second-half infrastructure bill, total U.S. fiscal
support is six times greater than the EU recovery fund," he
said. "The Fed is also supportive with U.S. money supply growing
two times faster than the Eurozone."
The dollar index duly shot up to levels not seen since late
November and was last at 92.057 =USD , well above its recent
trough of 89.677.
It also gained on the low-yielding yen, reaching a
nine-month top of 108.63 JPY= , and was last changing hands at
108.41.
The jump in yields has weighed on gold, which offers no
fixed return, and left it at $1,705 an ounce XAU= and just
above a nine-month low.
Oil prices were up the highest levels in more than a year
after Yemen's Houthi forces fired drones and missiles at the
heart of Saudi Arabia's oil industry on Sunday, raising concerns
about production. Prices had already been supported by a decision by OPEC and
its allies not to increase supply in April. O/R
Brent LCOc1 climbed $1.44 a barrel to $70.80, while U.S.
crude CLc1 rose $1.36 to $67.45 per barrel.

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