Daiichi Sankyo and Merck report phase 2 trial results for lung cancer drug
* S&P500 futures edge higher, hover near record high
* Long-term U.S. bond yields near 13-month peak
* Some investors see Fed revising up economic, rates
forecasts
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Global asset performance http://tmsnrt.rs/2yaDPgn
By Hideyuki Sano
TOKYO, March 15 (Reuters) - Global stock prices were off to
a solid start while U.S. bond yields hovered near a 13-month
peak on Monday as investors bet U.S. economic growth will
accelerate after the passing of a massive stimulus package.
U.S. S&P500 futures ESc1 rose 0.25% in early Asian trade,
trading just below a record high level touched last week, while
Japan's Nikkei .N225 ticked up 0.1%
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was little changed.
"With the $1.9 trillion economic package approved, there are
strong expectations of an economic recovery, which will be
supporting cyclical shares," said Masahiro Ichikawa, chief
strategist at Sumitomo Mitsui DS Asset Management.
The U.S. House of Representatives gave final approval last
week to the COVID-19 relief bill, giving President Joe Biden his
first major victory in office. Some investors speculate part of $1,400 direct payments to
households could find its way to stock markets, as seemed to be
the case with similar direct payments made last year for
coronavirus relief.
Investors also suspect the $1.9 trillion package, which
amounts to more than 8% of the country's GDP, could not only
boost growth but stoke inflation - to the detriment of bonds.
Rising inflation expectations could prompt the Federal
Reserve to signal it will start raising rates sooner when it
announces its latest economic projections at the end of Federal
Open Market Committee (FOMC) meeting on Wednesday.
"Following the fiscal stimulus packages it is inevitable
that Fed GDP forecasts will be revised up, and some FOMC members
might think rates will have to move higher sooner than they
anticipated last December," wrote economists at ANZ.
The 10-year U.S. Treasuries yield stood at 1.638%
US10YT=RR in early Monday trade, having risen to as high as
1.642% on Friday, a high last seen in February last year.
On top of continued U.S. economic optimism and increased
debt supply expectations after the stimulus, uncertainties about
whether the Fed will extend an emergency regulatory easing in
the so-called "supplementary leverage ratio" (SLR) added to the
sense of unease. Higher U.S. bond yields saw the dollar rising against other
major currencies.
The euro slipped to $1.1953 EUR= from last week's high of
$1.1990 while the dollar held firm at 109.07 yen, near
nine-month high of 109.235 set last Tuesday.
The British pound slipped 0.25% to $1.3934 GBP=D4 .
Bitcoin BTC=BTSP slipped to $59,691, off a record high of
$61,781 hit on Saturday after Reuters reported a senior Indian
government official said Delhi will propose a law banning
cryptocurrencies, fining anyone in the country trading or even
holding such digital assets. Oil prices were supported by production cuts by major oil
producers and optimism about a demand recovery as the global
economy recovers from the pandemic-induced recession.
U.S. crude futures traded at $65.93 per barrel CLc1 , up
0.5% on the day.
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(Editing by Lincoln Feast.)