GLOBAL MARKETS-Asia stocks pause at peaks, sustained by stimulus promise

* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* Markets mostly flat amid multiple holidays
* Asia shares ex-Japan already up 10% this year
* Treasuries rally on surprisingly soft CPI, dovish Powell
* Oil eases after longest winning streak in two years

By Wayne Cole and David Henry
SYDNEY, Feb 11 (Reuters) - Asian shares rested at record
highs on Thursday as investors digested recent meaty gains,
though the promise of endless free money to sustain buying was
reaffirmed by benign U.S. inflation data and a very dovish
outlook from the Federal Reserve.
Adding to the torpor was a lack of liquidity as markets in
China, Japan, South Korea and Taiwan were all on holiday.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS eased 0.1%, having climbed for four sessions
straight to be up over 10% so far this year.
Japan's Nikkei .N225 was shut after ending at a 30-year
peak on Wednesday, while Australia's main index .AXJO held
near an 11-month top.
Futures for the S&P 500 ESc1 and NASDAQ NQc1 both dipped
0.1%, having again hit historic highs on Wednesday.
Still, the outlook for more global stimulus got a major
boost overnight from a surprisingly soft reading on core U.S.
inflation, which eased to 1.4% in January. Federal Reserve Chair Jerome Powell said he wanted to see
inflation at 2% or more before even thinking of tapering the
bank's super-easy policies. Notably, Powell emphasised that once pandemic effects were
stripped out, unemployment was nearer 10% than the reported 6.3%
and thus a long way from full employment.
As a result, Powell called for a "society-wide commitment"
to reducing unemployment, which analysts saw as strong support
for President Joe Biden $1.9 trillion stimulus package.
Indeed, Westpac economist Elliot Clarke estimated over $5
trillion in cumulative stimulus, worth 23% of GDP, would be
required to repair the damage done by the pandemic.
"Historical experience provides strong justification to only
act against undesired inflationary pressures once they have been
seen, after full employment has been achieved, he said.
"To that end, financial conditions are expected to remain
highly supportive of the U.S. economy and global financial
markets in 2021, and likely through 2022."
The mix of endless Fed support and a tame inflation report
was a salve for bond market pains and 10-year yields eased to
1.12% US10YT=RR , from a 1.20% high early in the week.
That in turn weighed on the U.S. dollar, which slipped to
90.451 =USD on a basket of currencies and away from a 10-week
top of 91.600 late last week.
The dollar eased to 104.57 yen JPY= , from a recent peak
105.76, while the euro rallied to $1.2117 EUR= from its low of
$1.1950.
In commodity markets, gold was sidelined at $1,839 an ounce
XAU= as investors drove platinum XPT= to a six-year peak on
bets of more demand from the automobile sector. GOL/
Oil prices took a breather, having enjoyed the longest
winning streak in two years amid producer supply cuts and hopes
vaccine rollouts will drive a recovery in demand. O/R
"The current price levels are healthier than the actual
market and entirely reliant on supply cuts, as demand still
needs to recover," cautioned Bjornar Tonhaugen of Rystad Energy.
Brent crude LCOc1 futures eased back 50 cents to $60.97,
while U.S. crude CLc1 dipped 48 cents to $58.20 a barrel.

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(Editing by Lincoln Feast.)