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    TOKYO/MIAMI- Asian stocks jumped on Thursday after US Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low for a long time, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.

    Powell’s reassurance gave a fresh impetus to reflation trades and boosted risk asset prices while also driving US bond yields back up to one-year highs.

    MSCI’s ex-Japan Asia-Pacific shares index rose 1.0 percent while Japan’s Nikkei gained 1.6 percent.

    Hong Kong’s Hang Seng jumped 1.8 percent to pare more than half of its previous day’s losses following the announcement of a stamp duty hike.

    In a second day of testimony in Washington, Powell reiterated the Fed’s promise to get the US economy back to full employment and to not worry about inflation unless prices rose in a persistent and troubling way.

    “Powell said it will take three years for them to achieve its inflation target, essentially reaffirming the Fed will not raise interest rates until 2023,” said Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities.

    “A huge amount of cash investors have to work is flowing into the stock market, and that is more than offsetting any negative aspects of higher bond yields.”

    The prospects of a prolonged period of low interest rates came as investors expect a huge US fiscal stimulus and a progress in COVID-19 vaccinations to shore up the economy, especially the sectors hit the hardest by the pandemic.

    The US Food and Drug Administration said on Wednesday Johnson & Johnson’s one-dose COVID-19 vaccine appeared safe and effective in trials, paving the way for its approval for emergency use as soon as this week.

    Johnson & Johnson rose 1.3 percent following the news.

    On Wall Street, the Dow Jones average jumped 1.35 percent to a record high, outperforming 1.0 percent gains in tech-heavy Nasdaq, as investors rotated into cyclical shares out of flying-tech firms.

    In a possible sign of a fresh frenzy into old economy shares, GameStop rose 83.3 percent in extended trade, building on a gain of 103.9 percent on Wednesday. – Reuters