GLOBAL MARKETS-Asian stocks set to firm on global recovery prospects

* Nikkei futures up 0.4%; Hang Seng futures up 0.7%
* S&P 500 stock futures up 0.5%
* Dollar gains on euro, yen as U.S. yields race ahead
* Nasdaq falls 2.4%, confirming correction
* Banks, automakers lift European stocks

By Matt Scuffham
NEW YORK, March 8 (Reuters) - Asian stocks were set for a
strong open on Tuesday, helped mostly by global recovery
prospects and the passage of a $1.9 U.S. trillion stimulus bill,
shaking off a mixed Wall Street session after a big downturn in
tech shares.
U.S. Treasury Secretary Janet Yellen said on Monday that
President Joe Biden's coronavirus aid package would provide
enough resources to fuel a "very strong" U.S. economic recovery,
and noted "there are tools" to deal with inflation. Despite the positive cues, investors remain conflicted over
whether the stimulus will help global growth rebound faster from
the COVID-19 downturn or cause the world's biggest economy to
overheat and lead to runaway inflation.
Although futures markets suggested a higher open across
Asia, Michael McCarthy, chief markets strategist at CMC Markets,
said there was still a lot of uncertainty.
"What's going to determine the results today is the balance
between buying for the reflation trade and the selling of tech
(stocks)", he said. "It's difficult to say what's going to be
most influential given the spectacular gains across Europe
compared to the big drop in the Nasdaq."
The technology sector and other richly valued names have
been highly susceptible to rising rates.
Australia's benchmark S&P/ASX 200 index .AXJO rose 0.92%
in early trading.
Japan's Nikkei 225 futures NKc1 added 0.36% and Hong
Kong's Hang Seng index futures .HIS HSIc1 rose 0.68%.
E-mini futures for the S&P 500 EScv1 rose 0.55%.
On Wall Street, the Dow advanced while the Nasdaq shed over
2%. That marked a more than 10% fall since its Feb. 12 closing
high, confirming a correction in the index's value.
The Dow Jones Industrial Average .DJI rose 0.97%, the S&P
500 .SPX lost 0.54%, and the Nasdaq Composite .IXIC dropped
2.41%.
The pan-European STOXX 600 index .STOXX rose 2.10% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.02%.
"If rates are grinding higher because people are getting
optimistic about what economic growth looks like, that is still
supportive for equity prices," said Tom Hainlin, global
investment strategist at U.S. Bank Wealth Management's Ascent
Private Wealth Group in Minneapolis.
U.S. treasury yields advanced as investors continued to
price in higher inflation and more upbeat prospects for the U.S.
economy as it emerges from the coronavirus pandemic.
The benchmark 10-year yield US10YT=RR rose to 1.6029%,
from 1.594% late on Monday.
U.S. economic data also pointed to a continued recovery, as
the Commerce Department said wholesale inventories increased
solidly in January despite a surge in sales, suggesting
inventory investment could again contribute to growth in the
first quarter. On foreign exchange markets, the dollar index =USD hit a
three-and-a-half month high, rising rose 0.523%, with the euro
EUR= up 0.06% to $1.185.
Oil prices settled lower, retreating from a session peak
above $70 a barrel after attacks on oil facilities in Saudi
Arabia lifted prices that high for the first time since the
COVID-19 pandemic began.
U.S. crude futures CLc1 settled down $1.04, or 1.57%, at
$65.05 per barrel. Brent crude futures LCOc1 settled at $68.24
per barrel, down $1.12 or 1.61%.
Spot gold XAU= added 0.2% to $1,685.20 an ounce. U.S. gold
futures GCc1 % to $1,677.70 an ounce.

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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
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