GLOBAL MARKETS-Asian shares perk up as calmer bonds ease jitters

By Julie Zhu and Koh Gui Qing
HONG KONG/NEW YORK, March 2 (Reuters) - Asia extended the
global rally in stocks on Tuesday as a halt in a recent bond
markets sell-off eased investor nerves and lifted riskier
assets, although oil prices were on the defensive on fears of
slowing Chinese energy consumption.
MSCI's broadest index of Asia-Pacific shares outside Japan
firmed 0.97% while Japan's Nikkei .N225 was slightly down
0.12%.
Australian shares continued their climb on Tuesday, with
S&P/ASX 200 index .AXJO rising as much as 1.05%, its highest
since Feb. 19, as a rollout of another vaccine in the United
States and optimism over a coronavirus relief package boosted
hopes of a quicker global economic recovery. Chinese blue-chips gained 0.58% in early trade while Hong
Kong's Hang Seng .HSI advanced 0.9%, helped by steady and
robust demand from investors in mainland China for shares in the
Asian financial hub.
China will begins its annual session of parliament on Friday
in Beijing, which is expected to chart a course for economic
recovery and unveil a five-year plan to fend off stagnation.
U.S. stocks .N rallied overnight, with the S&P 500 .SPX
posting its best day in nearly nine months, as bond markets
calmed after a month-long selloff.
For now, all eyes will be on Australia's central bank, which
holds its monthly policy meeting on Tuesday. Analysts expect the
Reserve Bank of Australia to hold key rates at a historic low
but focus will shift to commentary about its quantitative easing
programme. "There's everything to like about the rally in EU and U.S.
equity markets," said Chris Weston, the head of research at
Pepperstone Group Ltd in Australia.
"Financials outperformed, with 95% of stocks in the S&P 500
gaining on the day," he said, adding that "clearly investors are
seeing the world in a new light".
U.S. stocks were roiled last week when a sell-off in
Treasuries pushed the 10-year Treasury yield US10YT=RR to a
one-year high of 1.614%. The 10-year yield was edging lower in
early trade at 1.4204%. US/
However, demand for riskier assets did not slug the dollar,
usually regarded as a safe-haven currency, as investors bet on
fast growth and inflation in the United States. The U.S. dollar
index =USD gained 0.14% in early trade against a basket of
currencies to stand at 91.142, within sight of a three-week high
hit overnight. USD/
The Australian dollar AUD=D4 was down 0.25% at $0.77510
ahead of the RBA meeting.
A stronger greenback weighed on gold XAU= , and the
precious metal was on the defensive at $1,711.4100 an ounce
early Tuesday. GOL/
The exuberance in risk assets did not help energy markets.
Oil prices fell more than 1% overnight after data showed China's
factory activity growth slipped to a nine-month low in February,
owing in part to disruptions over the Lunar New Year holiday.
There were also fears among energy investors that OPEC may
increase global supply following a meeting this week. O/R
Brent crude LCOc1 fell 1.27% to $62.88 a barrel, while
U.S. West Texas Intermediate crude CLc1 lost 1.3% to $59.85.

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