* Europe, Asia follow Wall Street's lead
* Yen slips on cordial Trump-Abe summit
* VIX at depressed levels
By Jamie McGeever
LONDON, Feb 13 World stocks and bond yields rose
on Monday, lifted by a re-emergence of so-called "Trump trades"
as investors bet that the U.S. president's tax reform plans will
boost economic growth and corporate profits.
Following on from Friday's record high closes on Wall
Street, Asian stocks rallied to 1-1/2-year peaks and a broad
measure of pan-European stocks hit its highest since late 2015.
The Japanese yen was the biggest underperformer among major
currencies, as is typical when riskier assets such as stocks are
Investors were also comforted by the two-day U.S.-Japan
summit held over the weekend apparently having ended smoothly
without President Donald Trump talking tough on trade, currency
or security issues.
"Trump-based reflation pricing remains the major driver in
the U.S. stock markets, and thirsty investors are waiting for
more details on Trump's corporate tax cut plans," said Ipek
Ozkardeskaya, senior market analyst at London Capital Group.
The STOXX 600, Europe's leading index of top 600
shares, rose 0.6 percent to 369.51 points, the highest in over a
year. Mining and basic resources sectors were among the leaders.
Germany's DAX was up 0.9 percent, led by a 15
percent rise in drugmaker Stada after the company
said it had received two offers for the acquisition of the
company, one of which is private equity group Cinven Partners
MSCI's broadest index of Asia-Pacific shares outside Japan
gained 0.5 percent, while Japan's Nikkei
rose 0.4 percent.
U.S. futures pointed to a higher open on Wall Street.
The S&P 500, Dow Jones Industrials and Nasdaq
Composite all posted record closing highs on Friday.
Comments from Trump on Thursday that he plans to announce
what he said would be the most ambitious tax reform plan since
the Reagan era in the next few weeks rekindled hopes for big tax
Economic data from major economies has also been upbeat,
including Friday's Chinese trade figures, while U.S. corporate
earnings have been also solid so far.
Kathleen Brooks, research director at City Index in London,
noted that the VIX measure of U.S. stock market volatility
closed last week below 11 for the third week in a row.
The last time this happened was over a decade ago.
"This is another sign that, for now, the Trump trade is
still on. It also suggests that even with the controversy Trump
has caused since he took office, financial markets are still
willing to give him the benefit of the doubt," Brooks said.
In the weekend meeting with Japanese Prime Minister Shinzo
Abe, Trump held off from repeating harsh rhetoric that accused
Japan of taking advantage of U.S. security aid, stealing
American jobs and "playing money markets". Nor were currency
Those apparently cordial discussions drove the dollar as
much as 0.9 percent higher against the yen to 114.17 yen.
It last stood at 113.65 yen, up 0.4 percent on the day and
extending its rebound from a 10-week low of 111.59 yen touched
Figures on Monday showed that Japan's economy grew for a
fourth straight quarter in the final three months of last year
as a weaker yen supported exports, but doubts over the
sustainability of the recovery persisted.
The euro's rise of 0.5 percent against the yen to 121.00 yen
, helped steady the European currency against the
dollar. The euro was last unchanged on the day at $1.0640
, inching further away from Friday's three-week low of
The euro has been dogged by fears about a strong showing for
French far-right leader Marine Le Pen ahead of a presidential
Ten-year U.S. Treasury yields rose 3 basis points to 2.44
In commodities, copper hit its highest levels since
May 2015 after shipments were shut off from the world's two
biggest copper mines - due to a strike in Chile and an export's
ban by Indonesia.
It last traded at $6,126 per tonne, up 0.6 percent on the
day. On Friday it jumped more than 4 percent, its biggest
one-day rise in almost four years.
Oil prices dipped slightly after strong gains on Friday on
reports that OPEC members delivered more than 90 percent of the
output cuts they pledged in a landmark deal that took effect in
International benchmark Brent crude futures fell 0.4 percent
to $56.45 per barrel.
(Reporting by Jamie McGeever; Editing by Alison Williams)