GLOBAL MARKETS-Asia stocks firm as U.S. economic support pushes Nasdaq to record

* S&P futures up slightly
* U.S. central bank repeats promise of low interest rates
* Washington moves toward more pandemic relief spending
* Bitcoin soars
* Asia stock markets this year: https://tmsnrt.rs/2zpUAr4

By David Henry
NEW YORK, Dec 16 (Reuters) - Asian stocks were set for gains
on Thursday as progress toward a long-awaited U.S. stimulus
package and a pledge by the Federal Reserve to keep interest
rates low helped the Nasdaq benchmark to a fresh record high.
Australia's S&P/ASX benchmark .AXJO rose 0.64% in early
trading. Japan's Nikkei 225 futures NKc1 added 0.02% while the
e-mini futures for the S&P 500 EScv1 rose 0.07%, following
another strong Wall Street finish.
The Fed said on Wednesday it would stick with its policy of
low interest rates while legislators moved closer to agreeing on
an additional $900 billion of COVID-19 aid, including $600 to
$700 stimulus checks and extended unemployment benefits.
"Chairman (Jerome) Powell assured the world that the Fed
will extend its asset purchase program if economic growth
slows," said Michael McCarthy, chief strategist at broker CMC
Markets in Sydney. "The re-assurance saw the markets continue on
their optimistic path," he said, but added that some bond
traders had been looking for more, prompting a selloff that
steepened the U.S. curve.
On Wall Street, the Nasdaq Composite .IXIC booked another
record close at 12,658.19, up 0.5% for the day. The S&P 500
.SPX gained 0.2% and the Dow Jones Industrial Average .DJI
slipped 0.2%.
U.S. Treasury yields increased slightly, however, with the
benchmark 10-year yield up 0.4 basis point to 0.925% on
Wednesday afternoon. The Fed said it will keep its benchmark overnight interest
rate near zero until an economic recovery is complete and it
will now tie its program of monthly government bond purchases to
that same goal.
Officials slightly lifted their outlook for economic growth
next year to 4.2% from 4.0% and lowered their expected
unemployment rate to 5% from 5.5%. The dollar initially rose slightly on the Fed's
announcement, but soon the dollar index =USD was down 0.2% on
the day, around a two-year low. Strategists at Commonwealth Bank of Australia said the
dollar's downward trend will continue because of the weight of
the U.S. current account deficit and the appeal an improving
world economy will give to other currencies.
Oil prices edged higher on Wednesday, buoyed by U.S.
government data that showed crude stockpiles fell last week and
by optimism about the U.S. coronavirus relief package.
Spot gold XAU= prices initially dipped on the Fed
announcement, but then rose 0.5% to $1,862.72 an ounce.
Bitcoin BTC=BTSP broke through $20,000 for the first time
on Wednesday, gaining more than 9% to $21,316 late in the day.
The move came amid increased institutional and corporate
interest.
The cryptocurrency has nearly tripled this year, buoyed by
demand from larger investors attracted to its potential for
quick gains, purported resistance to inflation and expectations
it will become a mainstream payment method. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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