GLOBAL MARKETS-World stocks look to extend bull run to 12th day on economic optimism

* MSCI ACWI has risen every single day so far in Feb
* Nikkei up 0.5%, Asian shares up 0.1%
* Oil rally fuelled by winter storm in Texas
* World FX rates http://tmsnrt.rs/2egbfVh

By Hideyuki Sano
TOKYO, Feb 16 (Reuters) - Global shares held firm on
Tuesday, with a solid foundation in place to extend their bull
run to a 12th consecutive session as optimism about the global
economic recovery and expectations of low interest rates drive
investments into riskier assets.
Oil prices soared to a 13-month high as a deep freeze due to
a severe snow storm in the United States not only boosted power
demand but also threatened oil production in Texas.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS ticked up 0.1% while Japan's Nikkei .N225 rose
0.4% to a 30-year high.
The mainland Chinese markets will remain closed for Lunar
New Year through Wednesday while Wall Street was also closed on
Monday.
S&P500 futures ESc1 traded 0.5% higher to a record level
and MSCI's all country world index (ACWI), which has risen every
single day so far this month, ticked up slightly.
"Global markets have started the week higher as investors
remain confident that the pandemic will soon give way to an
economic boom," wrote Mihir Kapadia, chief executive of Sun
Global Investments in London.
"Unless any drastic moves take place this week, we could
expect equity markets to remain strong."
Successful rollouts of COVID-19 vaccines in many countries
are raising hopes of further recovery in economic activities
hampered by range of anti-virus curbs.
U.S. President Joe Biden is pushing ahead with his plan to
pump an extra $1.9 trillion in stimulus into the economy, in a
further boost to market sentiment.
"The pace of the market's rally has been pretty fast but
there's no denying that it's pretty comfortable time for stocks
with expectations of low interest rates helping inflows to
stocks," said Masahiro Ichikawa, chief strategist at Sumitomo
Mitsui DS Asset Management.
The bullish view on the economy lifted bond yields, with the
10-year U.S. Treasuries gaining 5 basis points to 1.252%
US10YT=RR in early Asian trade, its highest since late March.
Investors are looking to the minutes from the U.S. Federal
Reserve's January meeting, due to be published on Wednesday, for
confirmation of its commitment to maintain its dovish policy
stance over the near future. That in turn is set to keep a tab
on bond yields.
But some analysts say investors should keep a wary eye on
bond yields.
"If U.S. bond yields keep rising, that could start to
unsettle stocks," said Sumitomo Mitsui Asset's Ichikawa.
Oil prices soared to their highest in about 13 months as a
U.S. winter storm added fuel to their rally on hopes of further
demand recovery.
U.S. crude futures CLc1 traded up 1.1% at $60.11 per
barrel.
Prices have rallied over recent weeks on tightening
supplies, largely due to production cuts from the Organization
of the Petroleum Exporting Countries (OPEC) and allied producers
in the wider OPEC+ group of producers.
Rising oil prices supported commodity-linked currencies such
as the Canadian dollar CAD=D4 while safe-haven currencies
including the U.S. dollar took a back seat.
The British pound held firm at $1.3910 GBP=D4 , staying at
its highest levels since April 2018.
The offshore Chinese yuan hit a 2-1/2-year high of 6.4010
per dollar overnight and last stood at 6.4032 CNH= .
MSCI's emerging market currency index .MIEM00000CUS hit a
record high as well.
The yen weakened to 105.36 per dollar JPY= , edging closer
to its four-month low of 105.765 set on Feb. 5. while the euro
was little changed at $1.2129 EUR= .
Bitcoin traded at $48,204 BTC=BTSP , near its record high
of $49,715 hit on Sunday.

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Global asset performance http://tmsnrt.rs/2yaDPgn
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