GLOBAL MARKETS-Global stocks rise after U.S. inflation not seen rising

* Bitcoin hits new record
* China imports rise at fastest pace in 4 years
* Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Herbert Lash
NEW YORK, April 13 (Reuters) - A gauge of global shares rose
to record highs on Tuesday, led by surging technology-related
stocks, as Treasury bond yields eased after U.S. consumer price
data for March showed the pace of inflation was not rising
wildly.
The consumer price index rose 0.6%, the biggest gain since
August 2012, as increased vaccinations and fiscal stimulus
unleashed pent-up demand. But the data is unlikely to change
Federal Reserve Chair Jerome Powell's view that higher inflation
in coming months will be transitory. "We're just going to have a temporary flame-up in prices but
there will not be any structural inflation that's here to stay,"
said Carlo Franchini, head of institutional clients at Banca
Ifigest SpA in Milan. "Fed comments continue to be
conciliatory."
The dollar fell and gold prices, a traditional inflation
hedge, rebounded from their lowest in more than a week. Equity
markets took the data in stride, especially technology-heavy
indexes whose stocks could be affected by rising debt costs.
MSCI's gauge of equity performance in 50 countries
.MIWD00000PUS gained 0.38% to an all-time peak, while the
pan-European STOXX 600 index .STOXX closed up 0.12%. The top
five holdings of the MSCI all-country world index are the big
U.S. technology companies.
On Wall Street, the S&P 500 .SPX gained 0.32% as it also
set a new intra-day record, while the Nasdaq Composite .IXIC
added 0.92%. The Dow Jones Industrial Average .DJI fell 0.22%.
U.S. federal health agencies recommended pausing the rollout
of Johnson & Johnson's COVID-19 vaccine for at least a few days,
raising fears of a setback in a broader economic rebound after
six women developed rare blood clots.
The drugmaker's shares JNJ.N slid 1.47% to a one-month low
after paring about half its initial decline on the view risks
remain low.
Asian stocks overnight gained support on China trade data
that showed exports in dollar terms rose more that 30% in March
from a year earlier, short of expectations. Imports jumped 38%,
their fastest pace in four years, suggesting a post-pandemic
recovery in Chinese spending. MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gave up most of its gains and closed up 0.1%.
China's blue-chip index .CSI300 fell 0.2%.
Treasury yields are being influenced by increased foreign
demand while low bond yields and the cost of debt will buoy
higher-risk equity assets, said Steven Oh, global head
of credit and fixed income at PineBridge Investments.
"The Treasury market reaction (to CPI) was effectively a
collective yawn in continuing the trend that in the near term,
market yields are largely unrelated to economic data," Oh said.
"Inflation and economic data matters in determining Treasury
yields, but it's been and will be a secondary factor for now."
Benchmark 10-year notes US10YT=RR fell 5.1 basis points to
yield 1.6251%, well below a 14-month high of 1.776% hit March
30. The yield curve flattened further after the last of this
week's auctions - $24 billion of 30-year bonds - was met with
solid demand, a result analysts at Jefferies called "fabulous."
The dollar briefly spiked on the CPI data before reversing
course and dipping to three-week lows after surging to
multi-month peaks in March as markets anticipated fiscal
stimulus would spur faster U.S. economic growth and higher
inflation.
The dollar index =USD fell 0.228%, with the euro EUR= up
0.27% to $1.1941. The Japanese yen strengthened 0.26% versus the
greenback at 109.10 per dollar.
Boston Federal Reserve Bank President Eric Rosengren said on
Monday the U.S. economy could see a significant rebound this
year due to looser money and fiscal policy but the country's job
market still faced weakness.
He said with inflation still below the central bank's 2%
target rate, the current "highly accommodative" monetary policy
stance remained appropriate. Bitcoin BTC=BTSP hit a record of $63,769, extending its
2021 rally to new heights a day before the listing of Coinbase
shares in the United States. U.S. gold futures GCv1 settled up 0.9% at $1,747.6 an
ounce
Oil prices rose on the strong Chinese import data. But the
rally was capped by concerns that pauses on the J&J vaccine
could delay the economic recovery and limit oil demand growth.
Brent crude futures LCOc1 rose 39 cents to settle at
$63.67 a barrel. U.S. crude futures CLc1 settled up 48 cents
at $60.18 a barrel.

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