GLOBAL MARKETS-Asian stocks hit record high, as earnings, stimulus boost recovery hopes

(Updates dateline and byline)
* MSCI ex-Japan Asia within sight of January high
* China shares to end at 13-year high before Lunar New Year
* Dollar near 2-week low
* Bitcoin consolidates after record high hit overnight

By Hideyuki Sano and David Henry
TOKYO/NEW YORK, Feb 10 (Reuters) - Asian stocks hit a record
high on Wednesday, as upbeat earnings, hopes of a large U.S.
fiscal stimulus and progress in vaccinations fanned optimism
about a global recovery from the pandemic.
MSCI's ex-Japan Asian shares index .MIAPJ0000PUS rose
0.8%, rising above its January peak to reach its highest level
ever.
In mainland China's CSI300 .CSI300 rose 1.3% to a 13-year
high and the Shanghai Composite .SSEC hit a five-year high on
the last trading day before the week-long Lunar New Year
holidays.
Japan's Nikkei .N225 eked out gains of 0.1% while e-mini
futures for the U.S. S&P 500 EScv1 rose 0.35%.
Corporate earnings have been beating expectations in many
places including the United States and Japan.
In the latest example, shares of Lyft Inc LYFT.O rose as
much as 11.8% while Twitter Inc TWTR.N climbed 3.5% in
aftermarket trading on their latest quarterly
results. "Globally investors are raising weightings on stocks as the
Biden administration looks set to spend pretty much close $1.9
trillion on its stimulus," said Norihiro Fujito, chief
investment strategist at Mitsubishi UFJ Morgan Stanley
Securities.
Although U.S. President Joe Biden's stimulus package faces
opposition from Republicans, his fellow Democrats last week
approved a budget outline that will allow them to muscle the
stimulus through in the coming weeks without Republican support.
On Wall Street, major stock indexes closed little changed on
Tuesday, though the tech-heavy Nasdaq Composite .IXIC eked out
a record high on a gain of 0.14%. The S&P 500 .SPX lost 0.11%.
The S&P had climbed the previous six sessions and is up 5.3%
for the month, underpinned by the prospects of the large U.S.
relief package.
The yield on the benchmark U.S. 10-year Treasury notes was
last at 1.16% US10YT=RR , not far off Monday's 10 1/2-month
high of 1.20%. Higher bond yields also reflect rising inflation
expectations, with break-even inflation calculated from
inflation-protected Treasuries US10YT=RR rising to 2.20
percent, the highest since 2014.
The Fed has said it would tolerate inflation rising beyond
2% temporarily.
U.S. inflation data, due later on Wednesday, is expected to
show an annual rise of 1.5% in core CPI.
In the currency market, the dollar traded near two-week lows
against a basket of currencies after sizable fall in the
previous trade.
The dollar traded at 104.55 yen JPY= after 0.64% fall on
Tuesday, its biggest in three months, while the euro changed
hands at $1.2119 EUR= , extending its rebound from a two-month
low of $1.1952 touched on Friday.
The British pound held firm at $1.3822, hitting its highest
level since April 2018.
The offshore Chinese yuan held firm at 6.4185 to the dollar
CNH= , within sight of its 2 1/2-year high of 6.4119 set on
Jan. 5.
Bitcoin, BTC=BTSP which gained 19.5% on Monday, stood
little changed at $46,292, not far off its record high of
$48,216 set on Tuesday.
Ethereum ETH=BTSP , the second-most-popular cryptocurrency,
hit a record high of $1,826.
Spot gold XAU= added 0.3% to $1,842.8 an ounce after
rising to a one-week high on Tuesday.
Brent oil LCOc1 held firm at $61.03 per barrel, near
13-month highs after a seven-day winning streak as investors are
betting that fuel demand will rise while OPEC and allied
producers keep a lid on supply. "With Brent over $60, it's been great psychologically," said
John Kilduff, partner at Again Capital LLC in New York.
"Everyone is feeling bullish about stronger demand and global
inventories in further decline."

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Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
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