* Powell and RBNZ vow to keep monetary policy easy
* U.S. dollar sold, MSCI AxJ index inches higher
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
By Tom Westbrook and Echo Wang
SINGAPORE/MIAMI, Feb 24 (Reuters) - Bond markets steadied,
the U.S. dollar fell and stocks edged ahead on Wednesday after
central banks from Washington to Wellington vowed to keep
monetary policy loose for a long time, giving investors enough
confidence to seek out riskier assets.
U.S. Federal Reserve Chair Jerome Powell told Congress on
Tuesday the economy remained "a long way" from employment and
inflation goals and that rates would stay low and bond buying
proceed apace until there was "substantial further progress".
The Reserve Bank of New Zealand on Wednesday made no changes
to its rates or bond purchase programme either and said policy
will need to remain stimulatory until inflation is sustained at
2% and employment hits maximum levels. Taken together, it was enough to reassure investors that
authorities won't rush to raise rates even if inflation
accelerates.
Risk-sensitive currencies rose, pushing the kiwi NZD=D3 ,
Aussie AUD=D3 and sterling GBP= to their highest levels
since early 2018, while the safe-haven Japanese yen slipped.
FRX/
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS , which has drifted 1.2% lower over the week as
rising yields pressured valuations, rose 0.3% and S&P 500
futures ESc1 rose 0.1%.
Tech stock selling pushed Japan's Nikkei .N225 0.4% lower.
.T
Benchmark 10-year U.S. Treasury yields US10YT=TWEB , which
fall when prices rise, were steady at 1.3480% after closing 2.4
basis points lower following Powell's testimony to Congress.
Powell did not seem too fussed about the selloff that has
driven the 10-year yield up by 40 basis points this year,
telling lawmakers it was a statement on the market's confidence
in the pandemic recovery.
But he cautioned that was a ways off and said markets would
get plenty of warning about any future policy adjustments.
His comments reversed a morning sell off on Wall Street, and
the S&P 500 .SPX closed 0.1% higher, although the Nasdaq
.IXIC , which is full of growth stocks more sensitive to higher
yields, finished Tuesday down 0.5%. .N
"The overall takeaway from Powell is that over the next
couple of months he will just keep singing the same dovish
commitment song," said Edward Moya, senior market analyst at
OANDA in New York.
"Until we see more than half of the 10 million jobs come
back, Powell won't change his tune."
Elsewhere commodity prices eased a little after hefty gains
in recent days and benchmark Brent crude oil futures LCOc1
fell 0.5% to $65.01 a barrel. U.S. crude futures CLc1 traded
0.8% lower at $61.19 a barrel. O/R
In currency markets, the Australian dollar hit a three-year
high of $0.7945 and the New Zealand dollar made the same
milestone, reaching $0.7378. AUD/
Sterling, which has been boosted by Britain's vaccine
rollout, briefly leapt as high as $1.4295, its best since April
2018.
Cryptocurrency bitcoin BTC=BTSP nursed losses at $49,700
after a two-day selloff.