* Nikkei at Tokyo at 30 years high
* Hong Kong at its best point in 32 months
* US futures gain 0.5%
* Global FX rates tmsnrt.rs/2egbfVh (Add analyst report)
HONG KONG, Feb. 16 (Reuters) – Asian shares rallied Tuesday, setting the stage for world shares to extend their bull run for a consecutive 12th session, while investors rallied banking on coronavirus vaccines dispensed to keep global economic recovery on track.
Oil prices jumped to a 13-month high as a deep frost as a result of a severe snowstorm in the United States not only increased power demand but also threatened oil production in Texas.
Asia’s surging segments set the stage for renewed optimism on global markets. The S & P500 futures rose 0.5% and MSCI ‘s global global index (ACWI), which has risen daily so far this month, rose slightly.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.62%, while Japan’s Nikkei rose 1.4% to a 30-year high.
In Hong Kong, the Hang Seng Index rose 1.4% to a 32-month high, while the Australian S&P / ASX200 gained 0.7% for the session. Mainland Chinese markets will be closed for the holidays until Thursday.
The positive sentiment was also extended to Bitcoin which rose by breaking through the $ 50,000 barrier.
Bitcoin traded at $ 49,323.56 in an Asian afternoon trading session, slightly lower than the high of $ 49,715 on Sunday.
JPMorgan Private Bank’s head of investment strategy, Alex Wolf, said the continued rollout of the coronavirus vaccine reassures investors that global growth would be protected in 2021.
“This is a positive feature that we are entering into the process of economic normalization,” Wolf said.
Minnett Ord adviser John Milroy said while stock markets were advancing investors were cautious about the risk of future inflation as a result of central bank and government stimulus programs around the world.
“It makes clear sense with rates remaining low for some time and investor desire for shares to remain strong.
“Getting a pull is the expectation that inflation could rise much faster and faster than the Fed currently thinks. Then if they raise standards to counter what happens to equity markets and indeed bond markets. ”
The bullish outlook on the economy lifted bond yields, with the 10-year U.S. Treasury gaining 5 basis points to 1.24% in Asian trading, the highest level since the end of March.
Investors are looking to the minutes from the U.S. Federal Reserve meeting in January, which will be released on Wednesday, to confirm its commitment to maintaining its dovish policy stance soon. That is then set to keep tabs on bond yields.
But some analysts say investors should keep a close eye on bond yields.
“If U.S. bond yields continue to rise, that could start stockpiling,” said Masahiro Ichikawa, chief strategist at Sumitomo Mitsui DS Asset Management.
Wolf said JPMorgan’s private bank forecast predicted that 10-year U.S. yields could reach 1.5% by the end of 2021, as investors once again blocked further economic stimulus. could help global growth prospects.
“Rising productivity is not a major concern for the rest of the world. The pace of ascent is more significant from an Asian perspective. A rapid response can have a detrimental effect on emerging markets, ”he said.
U.S. President Joe Biden is pushing ahead with his plan to pump an additional $ 1.9 trillion into the economy, in another boost in market sentiment.
U.S. crude futures traded up 1.1% at $ 60.11 per barrel.
Additional commentary by Tomo Uetake in Sydney Editing by Shri Navaratnam and Richard Pullin