* MSCI AxJ index up 0.4%; Nikkei up 1%
* Treasury yield curve flattens; dollar rally pauses
* Fed speakers, U.S. PPI data awaited
By Tom Westbrook
SINGAPORE, Oct 14 (Reuters) – Asian stock markets rose, the dollar eased and longer-dated bonds rallied on Thursday as investors reckoned on inflation bringing forward rate hikes around the world.
MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4%. Japan’s Nikkei climbed 1%.
The Shanghai Composite was marginally softer while Hong Kong markets were closed for a holiday.
Overnight figures showed another solid increase in U.S. consumer prices, while minutes from last month’s Federal Reserve meeting showed policymakers’ growing concern about inflation and a general agreement to start tapering asset purchases soon.
Traders responded by bringing forward rate-hike expectations but lowering the projected peak. Fed Funds futures pulled forward the first hike from late in 2022 to almost…