* U.S. inflation beat expectations, virus looks to be
stalling
* Nikkei surges to six-month top
* USD back under pressure; gold bounces
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Lawrence Delevingne
SINGAPORE/BOSTON, Aug 13 (Reuters) - Asia's stock markets
followed Wall Street higher on Thursday, as investors returned
to tech stocks, gold and selling dollars after steady virus
figures and a surprising jump in U.S. inflation boosted
sentiment.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS was up 0.2%, and gains in semiconductor makers
drove Japan's Nikkei .N225 1.9% higher to a six-month peak.
The rises come after a tech rally left the S&P 500 .SPX
within a whisker of a record closing high overnight, in a
climate where even bad news is regarded as good news if it
increases the chances of more stimulus to aid recovery. .N
"We'd seen value outperforming over the last few days, but
that was unwound last night," said Chris Weston, head of
research at Melbourne brokerage Pepperstone, pointing to a drop
in U.S real yields as inflation expectations rose.
"Maybe that was enough to get people back into the short
dollar, long precious metals, long tech trade," he said.
Rising fuel costs lifted U.S. consumer prices 0.6% last
month, compared with expectations for 0.3%, leaving core
inflation at 1.6% for the year to July. At the same time, the number of daily new COVID-19
infections in the United States seems to be stabilising around
55,000. S&P 500 futures ESc1 traded flat.
The bond market was steady after a huge auction and the
generally upbeat mood drove selling overnight, with benchmark
10-year U.S. debt yielding 0.6622%. US/
A softer dollars helped gold rise steadily, adding 1% to
$1,937 an ounce after whipsawing around $1,900 overnight. GOL/
Australia was the outlier in regional equity markets, with
selling of communications giant Telstra TLS.AX after a profit
plunge dragging on the index .AXJO . Markets are still eagerly awaiting a breakthrough in
wrangling over the next U.S. stimulus package, despite little
sign of progress in talks, and a crucial weekend meeting between
U.S. and Chinese trade officials.
"Exuberance in U.S. equities begs the question of whether
markets have succumbed to inflated optimism rather than reacting
to inflation and some optimism," said Vishnu Varathan of Mizuho
in Singapore, warning the inflation bounce seemed fragile.
"The V-shaped market rebound appears removed from the lived
realities of an arduous slog back for the real economy," he
said.
DOLLAR SLIPS
Besides gains on Wall Street the broader mood had investors
turning the blowtorch back on the U.S. dollar. FRX/
It has steadied in August after a 4% slump in July against a
basket of currencies, but was trading under pressure on Thursday
as a cautious tone from Federal Reserve policymakers overnight
reinforced expectations for low rates for a long time.
The dollar was last 0.2% weaker on the euro EUR=EBS at
$1.1806 while sterling GBP= crept off a one-week low hit in
the wake of diabolical growth figures overnight.
The only saving grace from a record 20.4% crash in
second-quarter growth in Britain, the most severe contraction
reported by any major economy so far, was a surprisingly strong
8.7% rebound in June. The Australian dollar AUD=D3 briefly rose after data
showed better-than-expected hiring last month, but as it was not
enough to stave off a rise in unemployment to a two-decade high
the currency settled to steady at $0.7168. AUD/
"The likelihood is that job gains will be much harder to
generate in the coming months," said ING economist Rob Carnell.
"The economy is still operating far from business as usual."
In commodities oil mostly clung on to solid gains made
overnight when a drop in U.S. crude inventories spurred hopes
that fuel demand is recovering. O/R
Brent crude futures LCOc1 were last 0.3% softer at $45.28
a barrel, while U.S. crude CLc1 dipped by the same margin to
$42.54 a barrel.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
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
2020 asset performance http://tmsnrt.rs/2yaDPgn
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>