* MSCI ACWI has risen every single day so far in Feb
* Nikkei up 0.5%, Asian shares up 0.1%
* Oil rally fuelled by winter storm in Texas
* World FX rates http://tmsnrt.rs/2egbfVh
By Hideyuki Sano
TOKYO, Feb 16 (Reuters) – Global shares held firm onTuesday, with a solid foundation in place to extend their bullrun to a 12th consecutive session as optimism about the globaleconomic recovery and expectations of low interest rates driveinvestments into riskier assets.
Oil prices soared to a 13-month high as a deep freeze due toa severe snow storm in the United States not only boosted powerdemand but also threatened oil production in Texas.
MSCI’s broadest index of Asia-Pacific shares outside Japanticked up 0.1% while Japan’s Nikkei rose0.4% to a 30-year high.
The mainland Chinese markets will remain closed for LunarNew Year through Wednesday while Wall Street was also closed onMonday.
S&P500 futures traded 0.5% higher to a record leveland MSCI’s all country world index (ACWI), which has risen everysingle day so far this month, ticked up slightly.
“Global markets have started the week higher as investorsremain confident that the pandemic will soon give way to aneconomic boom,” wrote Mihir Kapadia, chief executive of SunGlobal Investments in London.
“Unless any drastic moves take place this week, we couldexpect equity markets to remain strong.”
Successful rollouts of COVID-19 vaccines in many countriesare raising hopes of further recovery in economic activitieshampered by range of anti-virus curbs.
U.S. President Joe Biden is pushing ahead with his plan topump an extra $1.9 trillion in stimulus into the economy, in afurther boost to market sentiment.
“The pace of the market’s rally has been pretty fast butthere’s no denying that it’s pretty comfortable time for stockswith expectations of low interest rates helping inflows tostocks,” said Masahiro Ichikawa, chief strategist at SumitomoMitsui DS Asset Management.
The bullish view on the economy lifted bond yields, with the10-year U.S. Treasuries gaining 5 basis points to 1.252%in early Asian trade, its highest since late March.
Investors are looking to the minutes from the U.S. FederalReserve’s January meeting, due to be published on Wednesday, forconfirmation of its commitment to maintain its dovish policystance over the near future. That in turn is set to keep a tabon bond yields.
But some analysts say investors should keep a wary eye onbond yields.
“If U.S. bond yields keep rising, that could start tounsettle stocks,” said Sumitomo Mitsui Asset’s Ichikawa.
Oil prices soared to their highest in about 13 months as aU.S. winter storm added fuel to their rally on hopes of furtherdemand recovery.
U.S. crude futures traded up 1.1% at $60.11 perbarrel.
Prices have rallied over recent weeks on tighteningsupplies, largely due to production cuts from the Organizationof the Petroleum Exporting Countries (OPEC) and allied producersin the wider OPEC+ group of producers.
Rising oil prices supported commodity-linked currencies suchas the Canadian dollar while safe-haven currenciesincluding the U.S. dollar took a back seat.
The British pound held firm at $1.3910, staying atits highest levels since April 2018.
The offshore Chinese yuan hit a 2-1/2-year high of 6.4010per dollar overnight and last stood at 6.4032.
MSCI’s emerging market currency index hit arecord high as well.
The yen weakened to 105.36 per dollar, edging closerto its four-month low of 105.765 set on Feb. 5. while the eurowas little changed at $1.2129.
Bitcoin traded at $48,204, near its record highof $49,715 hit on Sunday.
(Additional reporting by Tomo Uetake in SydneyEditing by Shri Navaratnam)
