GLOBAL MARKETS-Stocks climb as investors look past U.S. hedge fund default

* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Ritvik Carvalho
LONDON, March 30 (Reuters) - Global stock markets rose on
Tuesday as investors shook off worries about a hedge fund
default that hit international banking stocks overnight and
remained focused on the global COVID-19 vaccination programme.
European stocks opened higher with the regional STOXX 600
index up 0.5%. Britain's FTSE 100 .FTSE rose 0.6%, Germany's
DAX .GDAXI and Italy's FTSE MIB rose 0.5% each, and France's
CAC 40 .FCHI rose 1%. .EU
MSCI's All Country World Index, which tracks stocks across
49 countries, traded flat. .MIWD00000PUS
S&P 500 stock futures were off 0.1%. ESc1 .N
Sentiment in Asia was mixed early, then turned positive,
with most of the region's major markets trading higher.
Nomura 8604.T and Credit Suisse CSGN.S are facing
billions of dollars in losses and regulatory scrutiny after a
U.S. investment firm, named by sources as Archegos Capital,
defaulted on equity derivative bets, putting investors on edge
about who else might be exposed.
Nomura 9716.T shares were down a further 1.1% Tuesday
after dropping as much as 16% on Monday, when it revealed it
could take a $2 billion loss from the hedge fund fallout.
"From a market perspective with contagion looking limited
... despite the news flow of further forced liquidations and
prime brokerage losses, this looks at this stage to be a
positioning- driven sell-off in U.S. futures and various single
stock names," said Eleanor Creagh, market strategist at Saxo
Bank.
Creagh added that further forced deleveraging was still a
risk if prime brokers tighten margin requirements.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was 0.6% higher. Mainland China's CSI300 index
.CSI300 rose 1%.
Hong Kong's Hang Seng Index .HSI gained 1.2% to reach
28,668, driven up by a rebound in the city's tech stock index.
That index has been under pressure from concern over the Chinese
government's move to increase regulation of those companies.
Japan's Nikkei .N225 was flat, dragged down by Nomura's
share price weakness. Australia sounded a weaker tone when the
S&P/ASX200 .ASXJO closed down 0.9% at its lowest point for a
week.
Credit Suisse's Asia Pacific senior investment strategist
Jack Siu said the prospect of Asian travel bubbles had sparked
enthusiasm among some investors in the region.
"Tourism-dependent Asian economies will benefit," he said.
Hong Kong's commerce secretary, Edward Yau, flagged Monday
the government had restarted talks with Singapore to
re-establish a potential travel bubble between the cities.
Investor sentiment was still closely tied to the pace of the
global vaccine rollout, said Citigroup equity derivative
solutions director Elizabeth Tian.
"Investors will also be watching the number of COVID cases
as rises in Western Europe and the Philippines sees the return
of renewed restrictions, while vaccination attempts threaten to
stall amidst supply constraints and vaccine nationalism," Tian
said.
"While restrictions are increased in Europe, the UK will be
relaxing stay-at-home rules," she added.
Wall Street on Monday pared early losses driven by the
banking sector on fears that issues from the downfall of
Archegos could spread throughout the banking sector.
The Dow Jones Industrial Average .DJI rose 0.3%, the S&P
500 .SPX lost 0.09% and the Nasdaq Composite .IXIC dropped
0.6%.
Benchmark U.S. 10-year yields US10YT=RR hit 1.7760%, their
highest since January 2020.
In currencies, the dollar rose to its highest in a year
against the yen, boosted by the spike in Treasury yields. The
euro fell to $1.1751 against the dollar for the first time since
Nov. 11. EUR=EBS FRX/
Oil prices fell as the Suez Canal opened up after days
closed by a grounded supercarrier and focus turned to an OPEC+
meeting this week where the extension of supply curbs may be on
the table amid new coronavirus pandemic lockdowns. O/R

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