GLOBAL MARKETS-Asian markets eye muted start on economic hopes, pandemic fears

By Pete Schroeder
Feb 18 (Reuters) - Asian markets were set for sideways trade
at Thursday's open as lingering pandemic concerns pushed against
stronger economic data, and with little firm direction from Wall
Street.
Australia's benchmark S&P/ASX 200 index .AXJO was down
0.1% in early trading, while Japan's Nikkei 225 futures NKc1
were up 0.05%. Hong Kong's Hang Seng index futures .HSI
.HSIc1 were down 0.2%.
The MSCI's global stock index .MIWD00000PUS was up 0.04%.
Strong retail sales out of the United States, coupled with
new indications the Federal Reserve will maintain its
accommodative stance and an ongoing push for further U.S.
stimulus, helped drive expectations the world's largest economy
will continue to post gains coming out of the pandemic.
But concern at the rapid spread of new variants tempered
enthusiasm.
"With an even larger stimulus package likely to be passed by
Congress before the end of March, the U.S. economic recovery
could gain more momentum in 2021," wrote Commonwealth Bank of
Australia currency analyst Carol Kong.
"Despite the recent positive vaccine developments, the
global economic outlook remains uncertain partly because of the
spreading virus variants."
On Wall Street, technology stocks faced some pressure on
inflation concerns, driving down the Nasdaq while other
companies rose on broader economic optimism.
The Dow Jones Industrial Average .DJI rose 0.29%, while
the S&P 500 .SPX lost 0.03% and the Nasdaq Composite .IXIC
dropped 0.58%. But while investors eyed inflation, minutes from the January
Fed meeting showed policymakers willing to push further
accommodation to boost the pandemic-scarred U.S. economy.
Persistent optimism spread to the U.S. dollar, which rose
against other currencies. The dollar index, a measure of the
currency's strength against six other major currencies was last
0.25% higher =USD . The risk-on appetite was also apparent in bitcoin, which
continued its upward march to exceed $52,000 amid signs it may
be gaining more mainstream acceptance. An ongoing deep freeze in Texas continued to drive up oil
prices, as the unusually cold weather hampered output at the
largest U.S. crude producing state. Brent crude .LCOc1 gained
1.6%, while U.S. West Texas Intermediate (WTI) crude .CLc1
settled up 1.8%, both levels not seen since January 2020.
Safe-haven U.S. Treasury yields were down slightly Wednesday
amid the stronger economic data. The benchmark 10-year yield
US10YT=RR , which touched 1.333%, its highest level since Feb.
27, 2020, later dropped to 1.2720%. The 30-year U.S. yield also
dropped. Spot gold XAU= edged 0.2% lower to $1,815.80 per ounce
pressured by higher benchmark U.S. Treasury yields. U.S. gold
futures .GCv1 fell 0.4% to $1,815.70 per ounce. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>