BOSTON, Aug 13 — Asian stocks were set for broad gains today after Wall Street’s S&P 500 index briefly touched record highs, as investors appeared to shrug off worries about stalled US stimulus talks and a shaky economic recovery.

Australian S&P/ASX 200 futures rose 0.69 per cent in early trading, while New Zealand’s benchmark S&P/NZX 50 index gained about 0.4 per cent.

Hong Kong’s Hang Seng index futures rose 0.42 per cent and Japan’s Nikkei 225 futures were flat.

Those gains came after the S&P 500 jumped yesterday, finishing just short of its February record closing high.

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Analysts said while recent headlines suggest economic risks are growing, they also bolster the case for continued stimulus from Washington, which has given markets something to cheer.

In a wide rally led by tech-related stocks, the Nasdaq and Dow also rose sharply. The Nasdaq was the first of the three major indexes to bounce back to an all-time high in June. The Dow remains below its February peak.

E-mini futures for the S&P 500 were flat.

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The gains on Wall Street came despite a continued impasse between lawmakers in Washington over the next economic relief package and a warning from Federal Reserve policymakers that the US recovery will be gradual and slow until the coronavirus is under control.

US government bond yields dipped from one-month highs yesterday after the Treasury saw good demand for a record US$38 billion (RM159.3 billion) auction of 10-year notes, but they remained higher on the day ahead of a 30-year bond auction on Thursday.

Kim Mundy, an analyst at Commonwealth Bank of Australia, said Washington would continue to support the economy despite a higher then expected inflation report.

“Monetary policy will remain very accommodative in the US for a long time,” she wrote.

The dollar index fell about 0.3 per cent amid mixed messages from US markets, and the Australian dollar fell 0.04 per cent versus the greenback at US$0.716.

Ray Attrill, Head of FX Strategy at National Australia Bank in Sydney, said that “the improvement in risk sentiment has carried the day” for the Aussie after initially being dragged lower by negative news out of New Zealand and second quarter wage data.

The Japanese yen strengthened 0.04 per cent versus the greenback at 106.85 per dollar, while Sterling was last trading at US$1.3033, up 0.01 per cent on the day.

Oil prices climbed after government data showed US oil inventories fell across the board, bolstering hopes for increased fuel demand in the world’s biggest economy.

US crude recently fell 0.19 per cent to US$42.59 per barrel and Brent was flat on the day.

Save-haven precious metals recouped some of their recent losses in a choppy session.

Gold swung from being down 2.5 per cent to add 0.3 per cent to US$1,917.16 an ounce, a day after its biggest daily fall in seven years. Silver fell as much as 5.5 per cent and rose as much as 6 per cent after a 15 per cent plunge, the largest in over a decade, on Tuesday.

Spot gold dropped 0.3 per cent to US$1,912.97 an ounce. — Reuters