GLOBAL MARKETS-Asian stocks step back from record highs on rising bond yields, weak U.S. data

(Rewrites throughout, adds analyst comment, Chinese shares,
updates levels throughout)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* MSCI ex-Japan eases from all-time highs set on Thursday
* Bond yields rise in recent days spurred by reflation trade
* Gold hits a 7-month low, oil prices slip

By Swati Pandey
SYDNEY, Feb 19 (Reuters) - Asian stocks pulled back from
all-time peaks on Friday as higher longer-dated bond yields and
underwhelming U.S. data dented investor confidence in a faster
economic recovery from the COVID-19 pandemic, while gold hit a
seven-month trough.
MSCI's broadest index of Asia Pacific shares outside of
Japan .MIAPJ0000PUS was last down 0.1% at 733.67 from a record
high of 745.89 touched on Thursday.
The index is on track for a small weekly loss after two
consecutive weeks of gains.
Since the start of the year, the index has surged nearly
10.5% largely led by easy monetary and fiscal policies around
the world.
On Friday, Australia's benchmark S&P/ASX 200 index .AXJO
was down 0.8% while Japan's Nikkei .N225 fell 0.4%.
Chinese shares started in the red with the blue-chip CSI300
.CSI300 off 0.6%.
"The recent move up in longer dated core yields appears to
be weighing on equity investors' mind," said Rodrigo Catril,
forex strategist at National Australia Bank.
Core bond yields have pushed higher globally led by the
so-called "reflation trade" where investors wager on a pick-up
in growth and inflation. Successful coronavirus vaccine
roll-outs so far and hopes of massive fiscal spending under U.S.
President Joe Biden have spurred reflation trades.
Germany's 10-year yield DE10YT=RR on Thursday posted its
highest close since June, British 10-year yields GB10YT=RR
traded at a 10-month top of 0.65% and U.S. Treasury yields
US10YT=RR are hovering near one-year highs around 1.3%, a
large factor supporting the U.S. dollar.
Rising bond yields hurt the appeal of gold XAU= , with spot
prices hitting a seven-month low of $1,766 an ounce on Friday.
GOL/
While rising yields weighed on investor sentiment,
"disappointing U.S. jobless figures didn't help the cause
either," Catril added.
An unexpected increase in the number of Americans seeking
jobless benefits hung heavy on outlook. The Labor Department
reported initial unemployment claims rose by 13,000 to 861,000,
injecting skepticism about how quickly the U.S. economy could
rebound from the global pandemic.
Further, U.S. housing starts fell 6.0% in January, the first
decline in five months.
On Wall Street, the Dow .DJI fell 0.38%, the S&P 500
.SPX lost 0.44%, and the Nasdaq Composite .IXIC 0.72%.
In currencies, the dollar was steady with its index =USD
at 90.568.
The British pound GBP= hit its highest in over three years
at $1.3965 led by the country's successful vaccine roll-out
where 16.5 million people have already been innoculated. It is
on track for a sixth straight weekly rise. FRX
The euro is poised for a small weekly loss. The single
currency was last at $1.2085. EUR=
The risk sensitive Australian dollar AUD=D3 was on track
for a third straight weekly rise, last trading at $0.7762.
In commodities, oil markets saw some profit-taking following
days of gains that were driven by a deep freeze across Texas
that weighed on production. O/R
Brent crude LCOc1 fell $1.17 to settle at $62.76 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures slipped
$1.37 to $59.15 a barrel.
Copper surged nearly 3% to its highest since April 2012 on
Thursday led by demand from Chinese investors who returned from
a week-long holiday. CMCU3

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MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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