* Asian inventory markets : https://tmsnrt.rs/2zpUAr4
* Markets principally flat amid a number of holidays
* Asia shares ex-Japan already up 10% this yr
* Treasuries rally on surprisingly comfortable CPI, dovish Powell
* Oil eases after longest successful streak in two years
By Wayne Cole and David Henry
SYDNEY, Feb 11 (Reuters) – Asian shares rested at recordhighs on Thursday as traders digested latest meaty positive factors,although the promise of limitless free cash to maintain shopping for wasreaffirmed by benign U.S. inflation information and a really dovishoutlook from the Federal Reserve.
Including to the torpor was an absence of liquidity as markets inChina, Japan, South Korea and Taiwan had been all on vacation.
MSCI’s broadest index of Asia-Pacific shares outdoors Japaneased 0.1%, having climbed for 4 sessionsstraight to be up over 10% to date this yr.
Japan’s Nikkei was shut after ending at a 30-yearpeak on Wednesday, whereas Australia’s important index heldnear an 11-month high.
Futures for the S&P 500 and NASDAQ each dipped0.1%, having once more hit historic highs on Wednesday.
Nonetheless, the outlook for extra international stimulus bought a majorboost in a single day from a surprisingly comfortable studying on core U.S.inflation, which eased to 1.4% in January.
Federal Reserve Chair Jerome Powell stated he wished to seeinflation at 2% or extra earlier than even considering of tapering thebank’s super-easy insurance policies.
Notably, Powell emphasised that when pandemic results werestripped out, unemployment was nearer 10% than the reported 6.3percentand thus a great distance from full employment.
Consequently, Powell referred to as for a “society-wide dedication”to lowering unemployment, which analysts noticed as robust supportfor President Joe Biden $1.9 trillion stimulus package deal.
Certainly, Westpac economist Elliot Clarke estimated over $5trillion in cumulative stimulus, value 23% of GDP, would berequired to restore the harm executed by the pandemic.
“Historic expertise gives robust justification to onlyact towards undesired inflationary pressures as soon as they’ve beenseen, after full employment has been achieved, he stated.
“To that finish, monetary situations are anticipated to remainhighly supportive of the U.S. economic system and international financialmarkets in 2021, and certain by way of 2022.”
The combination of limitless Fed help and a tame inflation reportwas a salve for bond market pains and 10-year yields eased to1.12%, from a 1.20% excessive early within the week.
That in flip weighed on the U.S. greenback, which slipped to90.451 on a basket of currencies and away from a 10-weektop of 91.600 late final week.
The greenback eased to 104.57 yen, from a latest peak105.76, whereas the euro rallied to $1.2117 from its low of$1.1950.
In commodity markets, gold was sidelined at $1,839 an ounceas traders drove platinum to a six-year peak onbets of extra demand from the auto sector.
Oil costs took a breather, having loved the longestwinning streak in two years amid producer provide cuts and hopesvaccine rollouts will drive a restoration in demand.
“The present worth ranges are more healthy than the actualmarket and completely reliant on provide cuts, as demand stillneeds to get better,” cautioned Bjornar Tonhaugen of Rystad Power.
Brent crude futures eased again 50 cents to $60.97,whereas U.S. crude dipped 48 cents to $58.20 a barrel.
(Enhancing by Lincoln Feast.)