* 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.
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. 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. 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.
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.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Asia stock markets
https://tmsnrt.rs/2zpUAr4 Asia-Pacific valuations
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Editing by Lincoln Feast.)
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