* Chinese stocks lead to gains in Asian stocks
* Bond yield withdrawal boosts technical stocks
* Bitcoin hits record high, dollar weakens
TOKYO, April 14 (Reuters) – Global stock markets rose to a new record Wednesday as bond yields eased after data showed US inflation was not rising wildly.
Most Asia-Pacific stock indices followed Wall Street higher, with Hong Kong’s Hang Seng the main gain in the region, while US Treasury yields fell further in the benchmark, marking a new three-week low.
Japan went against the trend, with the Nikkei falling 0.4% as rising coronavirus cases raised doubts about an economic reopening with 100 days to go before Tokyo hosts the Olympics.
The US consumer price index rose 0.6%, its largest increase since August 2012, as rising vaccinations and fiscal stimulus released pent-up demand. But the data is unlikely to change the view of Federal Reserve Chairman Jerome Powell that higher inflation will be transitory in the coming months.
Powell will speak at the Economic Club of Washington later in the day.
“The market was clearly bracing for higher CPI values,” Westpac strategists wrote in a customer note.
They said Tuesday’s result was “clearly interpreted in the context of the Fed’s commitment to look through ‘temporary’ inflation impulses.”
For bond markets, the question is whether the benchmark yield can break below 1.6% on Wednesday from just 1.611% on Wednesday, they wrote.
“That was an important technical level that, if it breaks, could lead to a rapid increase to 1.5%.”
The 10-year yield on US Treasuries had risen from the start of the year to a 14-month high of 1.776% on March 30, on bets that massive fiscal stimulus would accelerate the US recovery and fuel inflation faster than the US. Fed policymakers had expected.
But yields have declined this month, partly as the Fed insists that a slack labor market will prevent the economy from overheating.
A wave of strong auction results, including Tuesday’s 30-year bonds, also helped tame the yields.
MSCI’s widest index of Asia-Pacific stocks outside Japan gained 0.6%. Hong Kong’s Hang Seng rose 1.3%, while the Chinese blue chip index rose 0.7%.
MSCI’s measure of equity performance in 50 countries rose 0.15%, extending its all-time high.
The fall in bond yields drove up US technology stocks overnight, including Apple Inc, Microsoft Corp and Amazon.com Inc, the three largest positions in the global benchmark.
The S&P 500 gained 0.33% as it also posted intra-day and record close highs, while the Nasdaq Composite added 1.05%. The Dow Jones Industrial Average fell 0.2%.
Johnson & Johnson’s share fell 1.34% after US federal health authorities recommended pausing the rollout of the COVID-19 vaccine for at least a few days after six women developed rare blood clots. The setbacks in vaccine rollout have raised concerns about the global economic recovery.
Earnings will take center stage on Wednesday, with JPMorgan Chase & Co. and Goldman Sachs Group Inc among the companies report.
The US dollar fell along with government bond yields to a three-week low for large peer companies.
Gold, a traditional inflation hedge, extended its rise from the lowest in more than a week to about $ 1,745 in the spot market.
Bitcoin hit a record high of more than $ 63,860 and expanded its rally to new highs in 2021 the day Coinbase stock will be listed in the United States.
In the oil markets, Brent crude oil futures rose 40 cents to $ 64.07 a barrel. US crude oil futures added 37 cents to $ 60.55 a barrel.
Editing by Ana Nicolaci da Costa