GLOBAL MARKETS-Stocks, oil rise in Asia after U.S. records, dollar weakens

  • Reuters
  • Stock Market News
GLOBAL MARKETS-Stocks, oil rise in Asia after U.S. records, dollar weakens
Credit: © Reuters.

* Asian stock markets :

* MSCI ex-Japan rises

* Wall Street makes new records, Oil reaches 13-month high,

* Dollar falls, bitcoin rests

By Alun John and David Henry

Feb 9 (Reuters) - Asian stock markets rose on Tuesday after a record-setting day on Wall Street, while bitcoin paused for breath after an overnight endorsement from Tesla Inc TSLA.O sent the cryptocurrency up 20%.

Oil also hit 13-month highs, helped by rising optimism about a return in fuel demand,

However, in a sign that positive sentiment may run out in European trading, eurostoxx futures STXEc1 were down 0.05%, London's FTSE futures FFIc1 fell 0.12%, and E-mini futures for the S&P 500 ESc1 were flat.

Back in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.37% to 722.95 after climbing as high as 730.16 late last month.

Gains were led by Chinese blue chips .CSI300 which were up 1.67%, while the Hong Kong benchmark .HSI rose 0.51% and Korea's .KS200 rose 0.27%, with chip giants benefiting from the bitcoin excitement. Pang chief economist for Greater China at ING said Chinese markets' strong performance was a result of investors buying ahead of the Chinese New Year break, anticipating that prices would be higher after the holiday.

Chinese stock exchanges are closed for a week from Thursday.

Japan's Nikkei .N225 was up 0.27%.

Tuesday's gains in Asia matched the so-called reflation trades around the world, in which global markets bid up stocks, oil and gold while U.S. Treasury yields held shy of 11-month highs.

"Reflation on the back of U.S. fiscal stimulus and positive vaccine news remains the major theme for markets," strategists at National Australia Bank wrote.

Expectations have been building that inflation would pick up as governments and central banks continue massive spending and easy money policies until officials are certain that their economies will recover from the coronavirus pandemic.

Wall Street reached all-time closing highs on Monday as the Nasdaq Composite .IXIC added nearly 1% and the S&P 500 .SPX and the Dow Jones Industrial Average .DJI gained about 0.75%.

In more volatile cryptocurrency markets, bitcoin BTC=BTSP passed $47,000 for the first time, a 20% rise, before fluctuating a little below that level.

Tesla Inc TSLA.O said overnight it had invested around $1.5 billion in the virtual currency and expects to accept it as payment for its cars in the future. d'Anethan, sales manager at digital asset company Diginex, said most of the selling pressure in Asia had been absorbed.

"This morning, after over $1.2 billion of leveraged shorts got liquidated, the usual sellers of crypto will probably think twice before dumping their coins," d'Anethan said.

Oil prices continued to rise on Tuesday to 13-month highs. LCOc1 rose 45 cents, or 0.74%, U.S. West Texas Intermediate crude CLc1 was at $58.39 a barrel, up 43 cents, also 0.74%.

"There is a sense that the glut of oil supply is disappearing more rapidly than anybody thought possible," said Phil Flynn, senior analyst at Price Futures Group in Chicago. "There seems to be a paradigm shift in the market."

Spot gold XAU= rose 0.37% to $1,837 an ounce, a week high, as expectations of a large U.S. economic stimulus package bolstered its appeal as an inflation hedge. expectations hit the dollar index =USD , which dropped back further on Tuesday after tripping at the end of last week on a weaker-than-expected jobs report. It was last down 0.25% at 90.728.

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