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GLOBAL MARKETS-Asia shares try to rally, retail crowd catches silver bug

Published 01/02/2021, 01:21 pm
Updated 01/02/2021, 01:24 pm
© Reuters.
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* Asian stock markets : https://tmsnrt.rs/2zpUAr4

* MSCI ex-Japan swings higher, Nikkei tries to bounce

* S&P 500 futures ease on doubts over vaccine rollouts

* Retail crowd turns gaze on silver, jumps to 6-mth high

* Dollar supported by cautious mood, bonds brace for supply

By Wayne Cole

SYDNEY, Feb 1 (Reuters) - Asian shares tried to rally on Monday as Wall Street continued to struggle with doubts about vaccine rollouts and economic recovery, while silver surged as newly empowered retail investors turned speculative eyes to precious metals.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS recouped early losses to rise 0.7%, bouncing after four straight sessions of losses.

Japan's Nikkei .N225 added 0.8%, after shedding almost 2% on Friday, while Chinese blue chips .CSI300 gained 0.5% as the country's central bank injected more cash into money markets.

Wall Street indexes pared their losses but futures for the S&P 500 ESc1 were still off 0.3%, while NASDAQ futures NQc1 fell 0.4%.

Dealers were also warily awaiting new developments in the headline-grabbing battle between retail investors and funds that specialise in shorting stocks.

U.S. hedge funds bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp (NYSE:GME) GME.N , according to an analysis by Goldman Sachs (NYSE:GS) Inc. was that silver was the new target for the retail crowd as the metal jumped 5% to a six-month high XAG= . many analysts see this entertaining episode as a sideshow compared to signs of a loss of momentum in the United States and Europe as coronavirus lockdowns bite.

Indeed, two surveys from China showed factory activity slowed in January as restrictions took a toll in some regions. was the news on vaccine rollouts positive, especially given doubts about whether they will work on new COVID strains.

"It is these considerations, not what is happening to a video gamer retailer day to day, that has weighed on risk assets," said John Briggs, global head of strategy at NatWest Markets. "So much of the market's valuations, risk in particular, is premised on the fact we can see a light at the end of the COVID tunnel."

Doubts have also emerged about the future of President Joe Biden's $1.9 trillion relief package, with 10 Republican senators urging a $600 billion plan. jitters in stocks caused only a brief ripple in bonds with Treasury yields actually rising late last week, perhaps a refection of the tidal wave of borrowing underway.

A record $1.11 trillion of gross Treasury issuance is slated for this quarter, up from $685 billion the same time last year.

On Monday, U.S. 10-year yields US10YT=RR held at 1.077% and near the recent 10-month top of 1.187%.

Higher yields combined with the more cautious market mood have seen the safe-haven dollar steady above its recent lows. The dollar index stood at 90.535 =USD , having bounced from a trough of 89.206 hit early in January.

The euro idled at $1.2129 EUR= , well off its recent peak at $1.2349, while the dollar held firm at 104.70 yen JPY= .

Gold followed silver higher to $1,852 an ounce XAU= , but has repeatedly stalled at resistance around $1,875. GOL/

Global demand concerns kept oil prices in check. U.S. crude CLc1 was flat at $52.20 a barrel, while Brent crude LCOc1 futures edged up 10 cents to $55.14. O/R

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https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations

https://tmsnrt.rs/2Dr2BQA

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