GLOBAL MARKETS-Asian stocks hold vaccine-driven gains after U.S. defensive shift

By Lawrence Delevingne
BOSTON, Nov 11 (Reuters) - Stocks in Asia were set to
continue their gains on Thursday, buoyed again by continued
global stimulus efforts and hopes of a coronavirus vaccine.
Australian S&P/ASX 200 .AXJO shares rose 0.29% in early
trading, while Japan's Nikkei 225 futures NKc1 fell 0.2% and
Hong Kong's Hang Seng index futures HSIc1 rose 0.56%. MSCI's
broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS closed 0.01% higher.
The gains in Asia came after a mixed performance for U.S.
stocks. The Nasdaq closed up 2% on Wednesday as investors
switched back to technology stocks and away from economically
sensitive sectors as they weighed COVID-19 vaccine progress and
the likely timing of an economic rebound. The Dow Jones Industrial Average .DJI fell 23.29 points,
or 0.08%, to 29,397.63 and the S&P 500 .SPX gained 27.13
points, or 0.77%, to 3,572.66.
The momentum of vaccine hopes and encouraging comments from
European Central Bank chief Christine Lagarde on continued
economic support boosted European shares higher for the third
straight session. The pan-European STOXX 600 index .STOXX rose 1.08% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.05%.
The U.S. dollar rose and the safe-haven yen weakened again
on Wednesday as markets continued to adjust to higher interest
rates and prospects for economic growth. The Australian dollar was flat versus the greenback
at$0.728.
The New Zealand dollar was also muted in early trading after
it soared on Wednesday to its strongest in a year and a half as
traders scaled back bets that the central bank there would move
to negative interest rates. "We continue to recommend positioning for a 'great hawkish
shift' from the (Reserve Bank of New Zealand) - as it gradually
shifts its stance away from the most dovish central bank in the
G10 to a more balanced approach emphasizing 'lower for longer,'"
Morgan Stanley analysts wrote in a note Thursday
The euro fell to its lowest level against the dollar in a
week as yields on U.S. bonds rose compared with those on
European bonds.
The U.S. bond market was closed on Wednesday in observance
of Veterans Day after the yield of benchmark U.S. 10-year
Treasuries on Tuesday reached the highest level since March.
Global oil benchmark Brent LCOc1 rose on Wednesday,
briefly touching a more than two-month high above $45 a barrel
on hopes of a COVID-19 vaccine that could boost demand and later
pulling back as concerns about rising cases overtook bullish
news. "Crude markets remain torn by the bleak near-term picture
with curfews, closures and shutdowns becoming more widespread
across the U.S. and Europe; and the medium-term picture where
vaccines may bring a return to more normal conditions," Westpac
analysts for Australia and New Zealand wrote in a note Thursday.
Spot gold XAU= was flat at around $1,865.06 an ounce.

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