GLOBAL MARKETS-Asian stocks edge higher, led by rally in commodities

* Asian stock markets: https://tmsnrt.rs/2zpUAr4
* Crude oil, metal prices gain on growth outlook
* Expectations of faster growth spur inflation fears
* High-flying tech shares tumble in rotation shift

By Anshuman Daga and Echo Wang
SINGAPORE/MIAMI, Feb 23 (Reuters) - Asian stocks rebounded
from two-week lows struck on Tuesday as rising commodity prices
boosted market expectations of an improved growth outlook, a day
after rising U.S. Treasury yields and inflation prospects hit
U.S. tech shares.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS ticked up 0.2% after dipping to 719.8, the
lowest level in two weeks. The gauge has eased from last week's
record top but is still up just over 9% so far this year.
The Australian S&P/ASX 200 .AXJO and Singapore's Straits
Times index .STI both gained 0.6% and Hong Kong .HSI
advanced 1.1%. The tech-laden South Korea's Kospi .KS11 was a
prominent loser, down 0.3% and Taiwan .TWII eased 0.05%.
Japanese markets were closed for a public holiday.
"A higher interest rate environment forces investors to
consider the opportunity costs of investments. Stocks that have
significant borrowing, or produce no income for investors, may
be particularly vulnerable," said Michael McCarthy, chief market
strategist at broker CMC Markets in Sydney.
On Wall Street, high-growth stocks such as Apple AAPL.O ,
Microsoft MSFT.O and Tesla TSLA.O weighed on the Nasdaq
Composite .IXIC , which shed 2.5% on Monday.
Commodity prices again strengthened on Tuesday. Oil prices
rose on a tight global supply outlook after U.S. production was
hammered by frigid weather and an approaching meeting of top
crude producers is expected to keep output largely in check.
Brent crude LCOc1 was up 2.2% at $66.7, a one-year high.
Spot gold XAU= rose to a one-week high to $1,815.3 an ounce as
inflation worries boosted the bullion's appeal as a hedge.
The strength in commodities kept the Australian dollar
AUD=D3 steady at $0.79 against the U.S. dollar, just near a
three-year high.
Bond yields have risen sharply this month as prospects of
more U.S. fiscal stimulus boosted hopes for a faster economic
recovery globally. However that is also fuelling inflation
worries, prompting investors to sell growth stocks that have
rallied in recent months.
"Real U.S. interest rates are now in positive territory,
which has created some concern around the consequences for
equities markets," Cesar Perez Ruiz, chief investment officer at
Pictet Wealth Management said in a report.
The dollar index =USD was steady at 90.028, with the euro
EUR= up 0.090% at $1.2165. The Japanese yen JPY= was little
changed versus the greenback at 105.01 per dollar.
Cash Treasuries were not traded in Asia with Tokyo shut for
holidays, but futures firmed slightly and showed an implied
ten-year Treasury yield of 1.34% TNc1 .
Markets will turn their focus to Federal Reserve Chair
Jerome Powell who is delivering his semi-annual testimony on
Tuesday. Powell is likely to reiterate a commitment to keeping
policy super easy for as long as needed to drive inflation
higher, analysts said. "In addition to the ever-present question of what it may
take for the Fed to consider tapering, the most pressing
investor interest is at what point the Fed could respond to the
level or volatility of interest rates after the recent
increases," foreign exchange strategist at Citi said in a note.

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