GLOBAL MARKETS-Asian shares follow Wall St advance as inflation panic eases

WASHINGTON, March 22 (Reuters) - Asian stocks were set to
track Wall Street gains on Tuesday as bond yields pulled back,
easing concerns about inflation although investors are keeping a
close eye on rising COVID-19 cases in Europe.
Hong Kong's Hang Seng index futures HSIc1 rose 0.5%, while
Australian stocks .AXJO were up 0.3%. In Japan, Nikkei futures
JNIc1 were 0.8% higher. E-mini futures for the S&P 500 EScv1
gained 0.06%.
Global equities gained and safe-haven assets rallied on
Monday as investors balanced concerns over rising COVID-19 cases
in Europe against a break in the recent run-up of bond yields.
Shares earlier took a hit from a surprise move by Turkey's
President to replace the central bank governor with a critic of
high interest rates.
On Wall Street, the Dow Jones Industrial Average .DJI rose
0.32%, the S&P 500 .SPX gained 0.70% and the Nasdaq Composite
.IXIC added 1.23%.
Benchmark 10-year notes US10YT=RR last rose 15/32 in price
to yield 1.6787%, down from 1.732% late on Friday.
"U.S. risk assets were aided by a dip in Treasury yields to
start the week. Movements in yields will continue to be closely
watched this week amid a series of U.S. Treasury auctions and
testimony by Treasury Secretary Yellen and Fed Chair Powell,"
ANZ Research said in a daily note.
Federal Reserve Chair Jerome Powell said in remarks prepared
for a congressional hearing on Tuesday that the U.S. recovery
had progressed "more quickly than generally expected and looks
to be strengthening". Powell and other Fed officials were expected to make more
statements later this week.
Crude oil prices LCOc1 steadied after a sell-off, even as
new European coronavirus lockdowns damped hopes of a quick
recovery. Elsewhere in commodities, aluminum prices hit their highest
since June 2018 as investors worried Chinese efforts to reduce
smelter pollution would curb output.