GLOBAL MARKETS-Asian stocks set to mostly rise after Fed projects U.S. GDP surge

* Fed sees 2021 GDP growth of 6.5%, unemployment at 4.5%
* Fed says to keep rates low through all of 2023
* Dollar falters as Fed dashes early U.S. rate hike view

By Elizabeth Dilts Marshall
NEW YORK, March 17 (Reuters) - Asian stocks were set for
modest gains on Thursday after the Federal Reserve pledged to
keep monetary policy and rates unchanged and projected a rapid
jump in U.S. economic growth this year as the COVID-19 crisis
eases.
Japan's Nikkei 225 futures NKc1 added 0.12%, while Hong
Kong's Hang Seng index futures .HSI HSIc1 rose 0.68%.
Australia's S&P/ASX 200 index .AXJO , however, dipped 0.1%
in early trading while E-mini futures for the S&P 500 EScv1
rose 0.08%.
While inflation is expected to reach 2.4% this year, above
the central bank's 2% target, Fed Chair Jerome Powell called it
a temporary surge that will not change the Fed's pledge to keep
its benchmark overnight interest rate near zero.
"If the Fed isn't going to induce tightening, it's very
bullish for risky assets," said Teresa Kong, head of fixed
income and portfolio manager at Matthews Asia. "We should be
seeing a mild rally in Asian assets and currencies."
The Fed projected the U.S. economy will grow by 6.5% this
year - the largest annual output growth since 1984 - thanks in
part to massive federal fiscal stimulus and optimism around the
success of coronavirus vaccines. "It's sort of shocking ... that officially the United States
government believes it will grow faster than the Chinese
government believes it will grow this year," said Christopher
Smart, chief global strategist at Barings Investment Institute
in Boston, calling it a "head-turning moment for investors."
The S&P 500 closed at a record high and the Dow Jones
Industrial Average closed above 33,000 points for the first time
on Wednesday, bolstered by the Fed's strong economic forecast
and Powell's comments that it is too early to discuss
tapering-off measures.
The Dow Jones Industrial Average .DJI rose 0.58%, while
the S&P 500 .SPX gained 0.29%.
The Nasdaq Composite .IXIC climbed 0.4% and remains down
about 4% from its Feb. 12 record-high close.
The pan-European STOXX 600 index .STOXX lost 0.45% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.22%.
Emerging market stocks lost 0.46%.
The benchmark 10-year Treasury note US10YT=RR, last fell
4/32 in price to yield 1.6462%.
The dollar index dropped 0.5% to 91.405 =USD after the Fed
comments. The euro rose 0.7% against the dollar to $1.1978
EUR=EBS . Against the yen, the dollar fell 0.1% to 108.87 yen
JPY=EBS . The Australian dollar rose 0.08% versus the greenback at
$0.780.
Oil slipped for the fourth day on Wednesday, weighed down by
rising U.S. crude inventories and by expectations of weaker
demand in Europe, where the vaccine roll out is faltering. Brent
crude LCOc1 settled 39 cents, or 0.6% lower, at $68 a barrel,
and U.S. West Texas Intermediate (WTI) crude CLc1 dropped 20
cents, or 0.3%, to end at $63.68. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
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