* MSCI ACWI near record peak hit in late January
* Brisk earnings, U.S. stimulus, strong data boost sentiment
* Bond yields higher on rising inflation expectations
* Dollar, pound, shekel favoured on progress in vaccination
* European shares seen slightly higher
By Hideyuki Sano
TOKYO, Feb 5 (Reuters) - - Global shares traded near record
highs on Friday, with Asian stocks taking their lead from Wall
Street, as progress in vaccine distribution prompted bets on
further normalisation in the global economy and an earnings
recovery.
An index of the world's major 50 markets, MSCI ACWI
.MIWD00000PUS , rose 0.2% to 667.90, coming within reach of a
record high of 670.82 touched about two weeks ago. It was the
fifth consecutive days of gains.
European stocks are expected to open on a firm footing, with
euro stoxx futures STXEc1 up 0.3% in early trade while
Britain's FTSE futures FFIc1 were flat.
MSCI's gauge of Asian shares outside Japan .MIAPJ0000PUS
rose 0.6% while Japan's Nikkei .N225 rallied 1.5%.
On Wall Street, each of the major indexes rose more than 1%
on Thursday, with the Nasdaq Composite Index .IXIC and S&P 500
.SPX setting record highs.
"What's driving the market is corporate earnings are posting
a strong recovery," said Jumpei Tanaka, strategist at Pictet.
"And there are piles of money saved in MMF (money market
funds) and elsewhere that are likely to be invested in stocks
once the economy normalises as vaccination programmes progress."
Expectations of a large stimulus by U.S. President Joe
Biden's administration also supported risk sentiment while
better-than-expected data on U.S. job markets released in the
past two days is fanning a bullish mood ahead of the payroll
report due at 1330 GMT.
Longer-term U.S. Treasury yields rose in anticipation of a
large pandemic relief bill from Washington as well as on
heightening inflation expectations.
The benchmark 10-year yield US10YT=RR stood at 1.137%,
having risen to a three-week high of 1.162% the previous day
while the 30-year bonds US30YT=RR yielded 1.931%, near its 10
1/2-month high of 1.951% touched on Thursday.
Bond yields rose in Europe as well, with Germany's 30-year
government bond yield DE30YT=RR climbing back into positive
territory for the first time since September.
A market gauge of future U.S. inflation USIL5YF5Y=R was at
its highest since October 2018 while that for the euro zone
EUIL5YF5Y=R hit its highest since May 2019.
In the currency market, the dollar strengthened against most
of its peers as traders' focus shifted to the relative strength
of the U.S. growth.
Until recent weeks, the dollar had been sold on expectations
that a global economic recovery will promote outflows of funds
to riskier currencies from the safe-haven dollar.
The U.S. dollar index =USD stood near a two-month high,
having risen 1.1% so far this week, on course for its biggest
weekly increase since late October.
The euro changed hands at $1.1964 EUR= , having hit a
two-month low of $1.1952 while the yen hit a 3-1/2-month low of
105.70 per dollar JPY= .
"It seems markets are now trying to trade on economic
normalisation based on progress in vaccination," said Arihiro
Nagata, general manager of global investment at Sumitomo Mitsui
Bank.
"The fact that the only currencies that are doing better
than the dollar over the past two days are the British pound and
the Israeli shekel, the two countries that are going further
ahead in vaccination, seems to support that."
The British pound stood at $1.3678 GBP=D4 not far from its
2 1/2-year peak of $1.3759 hit late last month.
The shekel ILS=D4 rose over the past two days, reversing
its decline since mid-January after the Bank of Israel
intervened to stem the shekel's strength after it had hit a
24-year high.
Strength in the dollar pushed gold to a two-month low of
$1,785.10 per ounce XAU= on Thursday. The metal was last
traded at $1,797.40.
Oil extended its gains on upbeat economic mood, falling
inventories and the OPEC+ decision to stick to its output cuts.
U.S. crude CLc1 rose 1% to $56.80 per barrel and Brent
LCOc1 was at $59.38, up 0.9%.
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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
Recovery in earnings https://tmsnrt.rs/3oLYFfL
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