GLOBAL MARKETS-Asian markets offer mixed signals as investors juggle stimulus, pandemic

By Pete Schroeder
WASHINGTON, Feb 16 (Reuters) - Asian markets pointed to a
mixed open on Wednesday, as investors juggle the prospects for
an economic comeback and additional stimulus with continued
pandemic concerns.
Australia's benchmark S&P/ASX 200 index .AXJO was up 0.06%
in early trading, while Japan's Nikkei 225 futures NKc1 were
up 0.12%. Hong Kong's Hang Seng index futures .HSI .HSIc1
were down 0.37%.
The tentative open comes after a mixed finish on Wall
Street. The expectation that U.S. policymakers will stick with
significant fiscal and monetary stimulus helped drive stocks
higher and spur a sell-off in bonds. Concerns over rising
interest rates weighed on some sectors.
"U.S. markets started the week in an optimist mode after
being closed for Presidents Day on Monday," wrote ANZ analysts
in a research note. "As inflation expectations rise, investors
are looking to reduce their exposure to fixed income in favour
of investments which will rise with any wave of inflation."
On Wall Street, the Dow Jones Industrial Average .DJI
scored another record closing high on Tuesday, climbing 0.2%.
The S&P 500 .SPX fell 0.06%, and the Nasdaq Composite .IXIC
fell 0.34%.
The MSCI's global stock index .MIWD00000PUS was down 0.1%.
The surge came as the United States continued to ramp up
vaccine distribution and President Joe Biden pitched his $1.9
trillion pandemic relief bill.
The continued rise of bitcoin added to the bullish appetite,
after the cryptocurrency briefly cleared $50,000 for the first
time. The U.S. dollar bounced back from three-week lows, boosted
by rising Treasury yields. Against a basket of global rivals
=USD , the dollar gained 0.21%. On Tuesday, the 10-year U.S. Treasury yield rose above 1.3%
for the first time since the pandemic took hold. The steepening
yield curve reflected expectations of ongoing fiscal and
monetary stimulus.
A deep freeze across the U.S. South that shut down wells and
refineries helped push oil prices to near 13-month highs on
Tuesday. U.S. West Texas Intermediate (WTI) crude CLc1 futures
settled up 1%, and Brent LCOc1 settled up 0.1%. Investors will be eyeing fresh U.S. retail sales data on
Wednesday for any signs of recovery, as well as newly published
minutes from the Federal Reserve's January policy meeting.
Earnings reports this week from Hilton Worldwide Holdings
Inc HLT.N , Hyatt Hotels Corp H.N and Marriott International
Inc MAR.O will also be scrutinized for signs of a pickup in
global travel demand.
Spot gold XAU= fell 1.2% on Tuesday, with U.S. gold
futures .GCv1 settling down 1.3% as investors veered away from
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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
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