* Graphic: World FX rates http://tmsnrt.rs/2egbfVh
* Graphic: Foreign flows into Asian stocks https://tmsnrt.rs/3f2vwbA
* Indian 10-yr yields elevated despite RBI supportive views
* Poll finds bullish positions on INR at over three-year
high
* Tech-dominated indexes of South Korea, Taiwan surge
* Malaysia's stock index surges as corporates show cautious
optimism
By Rashmi Ashok
Feb 25 (Reuters) - Asian stocks rose on Thursday after U.S.
Federal Reserve Chair Jerome Powell soothed nerves over rising
U.S. bond yields and calmed inflation worries by reassuring
markets for a second day that interest rates would be left
unchanged for now.
Tech-heavy indexes of South Korea .KS11 and Taiwan
.TWII , which faced selling pressure due to worries over high
valuations amid the spike in bond yields globally, reclaimed
their footing to jump 3.5% and 1.5%, respectively.
Powell said it could take more than three years to hit the
inflation target, while clarifying that while some asset prices
may go up, it wouldn't necessarily lead to inflation and would
not warrant a policy response. "There were rising concerns from investors that the central
bank may unwind some aspects of its dovish stance, given rising
inflation expectations. But, with the Fed to remain so, I think
that has given equities the greenlight to continue gaining,"
said Daniel Dubrovsky, strategist at DailyFX.
Bond markets were not entirely convinced by Powell's
comments though, with yields on the U.S. 10-year Treasuries
closing slightly higher.
Bond markets have been largely supported by massive central
bank purchases to fund government spending and keep yields from
surging, and the prospects of these purchases tapering off
continue to weigh on markets.
Indian bond markets also appeared to have ignored assurances
by Reserve Bank of India Governor Shaktikanta Das on Thursday of
continued support for bonds, after the government's massive
borrowing programme sparked a sell-off recently. By midday, yields on India's 10-year bonds IN10YT=RR stood
at 6.161%, higher than 6.147% close on Wednesday.
Meanwhile, bullish positions on the Indian rupee climbed to
a more than three-year high on optimism over economic outlook, a
Reuters poll found. Stubbornly high inflation and better growth outlook may
prompt the Indian central bank to raise the reverse repo rate
twice by 20 basis points in the second half of this year,
Deutsche Bank economists said in a note.
Malaysian shares .KLSE surged nearly 2% as relatively
resilient earnings and better outlook from lender Malayan
Banking MBBM.KL , conglomerate Sime Darby SIME.KL and
telecoms provider Axiata AXIA.KL helped lift their shares.
Philippine equities .PSI did not trade on account of a
local holiday.
HIGHLIGHTS:
** Bullish bets raised on yuan, rupiah, Singapore dollar;
Views on Philippine peso hit as government extends COVID-19
restrictions. ** Top gainers on the Singapore STI .STI include Sembcorp
Industries Ltd SCIL.SI up 6.63% and Singapore Airlines Ltd
SIAL.SI up 6.18%.
** Top gainers on the Jakarta stock index .JKSE include
Bank Ganesha Tbk PT BGTG.JK up 34.62% and Bank Artha Graha
Internasional Tbk PT INPC.JK up 34.4%.
Asia stock indexes and
currencies at 0750 GMT
COUNTRY FX RIC FX FX INDE STOCKS STOCK
DAILY YTD % X DAILY S YTD
% % %
Japan JPY= -0.19 -2.66 <.N2 1.67 9.93
25>
China