GLOBAL MARKETS-Asian shares hit a record high after Yellen calls for big spending

* MSCI ex-Japan Asia gains almost 1%, Nasdaq futures up on
Netflix
* Investors bullish after Yellen supports big spending
* White House power transition seen smooth, underpinning
mood

By Hideyuki Sano
TOKYO, Jan 20 (Reuters) - Asian shares climbed to a record
high on Wednesday as U.S. Treasury Secretary nominee Janet
Yellen advocated for a hefty fiscal relief package to help the
world's largest economy ride out a pandemic-driven slump.
At her confirmation hearing on Tuesday, she said the
benefits of a big stimulus package are greater than the expenses
of a higher debt burden. U.S. President-elect Joe Biden, who will be sworn into
office on Wednesday, last week laid out a $1.9 trillion stimulus
package proposal to boost the economy and speed up the
distribution of vaccines.
"There will be a large-scale fiscal spending. The Fed is
seeking to achieve two percent inflation and full employment,
which still look distant, so it will keep interest rates low for
some time and market sentiment should remain robust," said
Yoshinori Shigemi, macro strategist at Fidelity International.
MSCI's Asia-Pacific index outside Japan rose 0.95%
.MIAPJ0000PUS , reaching its highest level ever.
Hong Kong's Hang Seng .HSI rose 1.0% to approach its 2019
peak while Australian shares added 0.6% to reach an all-time
high .AXJO . Japan's Nikkei .N225 , however, slipped 0.45% on
profit-taking.
The U.S. Nasdaq futures NQc1 gained 0.4%, with Netflix
shares NFLX.O jumping 12.6% after the bell as the streaming
pioneer reported strong growth in subscribers and projected it
will no longer need to raise debt. The results came after all three major Wall Street indexes
posted solid gains on Tuesday.
U.S. President Donald Trump, in a farewell address released
on Tuesday, touted his legacy and wished luck to the new
administration even though he steered clear of acknowledging his
successor by name. Biden will take office on Wednesday under unprecedented
security measures after the Jan. 6 assault on the Capitol.
"The transition will likely be smooth and hassle-free, so
that's another reason supporting markets overall," said Yasutada
Suzuki, head of emerging markets investment at Sumitomo Mitsui
Bank.
In the currency market, the dollar was on the back foot
against other currencies. The euro stood at $1.2148 EUR= , up 0.15% and off Monday's
1 1/2-month low of $1.2054, drawing support from a ZEW investor
sentiment survey that beat forecasts and the Italian government
surviving a confidence vote. The yen was little moved at 103.81 to the dollar JPY=
while the Chinese yuan ticked up about 0.1% to 6.4741 per dollar
CNH=D4 .
Oil prices rose on hopes that Biden's proposed stimulus will
lift economic output. U.S. crude futures inched up 0.3% to $53.15 a barrel CLc1
while international benchmark Brent futures LCOc1 rose 0.3% to
$56.09 per barrel.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>