GLOBAL MARKETS-Stocks surge as hopes grow for U.S. stimulus

* Revived hopes for U.S. stimulus boosts morale
* Biden victory getting priced into markets, analysts say
* Oil, gold prices gain
* European shares open higher
* China shares, yuan jump after a week-long holiday
* Euro zone periphery govt bond yields: http://tmsnrt.rs/2ii2Bqr

By Tom Arnold and Hideyuki Sano
LONDON/TOKYO, Oct 9 (Reuters) - World shares pushed on from
one-month highs, with Asian stocks closing in on
two-and-a-half-year highs, as expectations grew of a Democratic
victory in U.S. elections next month, reviving hopes for more
U.S. stimulus.
A widening lead for Democratic presidential candidate Joe
Biden and the possibility his party will win both the Senate and
the White House in the Nov. 3 vote has raised the prospect of a
big economic stimulus.
The possibility of stimulus is also helping to counter
investor wariness about a Democrat pledge to hike corporate tax
rates.
The pan-European STOXX 600 index .STOXX rose 0.3%, set for
its second straight week of gains. Wall Street futures ESc1
were up 0.4%.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS rose 0.3%, inching closer to its Aug. 31 peak,
which was its highest level since March 2018. China's CSI300
index .CSI300 gained 2% after the Golden Week holidays.
Japan's Nikkei .N225 dipped 0.1% after reaching a
seven-and-a-half-month high.
The MSCI world equity index .MIWD00000PUS , which tracks
shares in 49 countries, was up 0.1% at a more than one month
high.
On Wall Street on Thursday, the S&P 500 .SPX gained 0.80%
and the Nasdaq Composite .IXIC added 0.5%.
In a sign markets are pricing in a Biden victory, clean
energy-related shares have outperformed in recent weeks. The
iShares Global Clean Energy ETF ICLN.O has gained 14% so far
this month, compared with 4% gains in the S&P 500 energy index.
"Biden seems to have a clear lead following the TV debate
and a coronavirus cluster in the White House, which has raised
questions about Trump's crisis management capabilities," said
Mutsumi Kagawa, chief global strategist at Rakuten Securities.
A new Reuters/Ipsos poll found Americans are losing
confidence in U.S. President Donald Trump's handling of the
coronavirus pandemic. His net approval on the issue that has
dropped to a record low. The November contract of Volatility Index futures VXX0
dropped to 30.25, its lowest level in three weeks, another sign
of reduced worries about a contested election.
"The rise in U.S. yields, particularly at the long end,
suggests increased expectations of a blue wave in the election,"
said Koichi Fujishiro, economist at Dai-ichi Life Research
Institute.
The 10-year U.S. Treasuries yield has risen 8.5 basis points
so far this week, to 0.779% US10YT=RR . It hit a four-month
high of 0.797% on Wednesday, but has slipped in part due to weak
economic data.
The 10-year German bond yield was unchanged at -0.525%
DE10YT=RR . Other core yields were a touch lower FR10YT=RR ,
BE10YT=RR . Data on Thursday showed the number of jobless claims in the
U.S. came in 20,000 higher than economists expected at 840,000,
showing unemployment in the world's largest economy remains
historically high and a recovery in the labour market is losing
momentum. Additionally, the World Health Organization reported a
record one-day increase in global coronavirus cases on Thursday,
led by a surge of infections in Europe.
In the currency market, the dollar weakened against most
other currencies, easing 0.1% against a basket of currencies
=USD at 93.47 and down 0.4% for the week, the second week of
declines in a row. It reached a two-month high at 94.75 in late
September. The Chinese yuan was the biggest beneficiary of the rising
hopes of a Biden win, posting its biggest daily rise in more
than four years after the holidays.
The yuan CNY=CFXS was last up 1.2% at 6.7112 per dollar in
onshore trade and up half a percent to 6.7024 per dollar
offshore CNH=D3 .
The euro EUR=EBS rose 0.1% to $1.1776, while sterling
GBP=D3 added 0.2% to $1.2961 but fell against the euro after
worse-than-expected UK gross domestic product data.
Oil prices edged up, propelled by supply outages caused by a
storm in the Gulf of Mexico and a strike of offshore workers in
Norway. Both benchmark contracts were on course for their
biggest weekly gains since early June. O/R
Brent LCOc1 was up 16 cents at $43.50 a barrel. U.S. West
Texas Intermediate crude CLc1 rose 14 cents to $41.33.
A weaker dollar boosted gold XAU= , which gained 1.1% to
$1,914.28 per ounce. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country Wolrd Index Market Cap http://tmsnrt.rs/2EmTD6j
Stocks versus COVID https://tmsnrt.rs/2GCoYoa
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