GLOBAL MARKETS-Dollar and stocks gain as Fed charts soft landing

(Updates prices to 0600 GMT)

By Tom Westbrook

SINGAPORE, Sept 19 (Reuters) - The dollar bounced, long-dated bond yields were up and Asian stocks surged after the Federal Reserve announced a 50-basis-point rate cut and flagged a measured easing cycle ahead, leaving open a path to a soft landing for the U.S. economy.

The S&P 500 hit a record high overnight and although it closed slightly lower, futures rose 1% through the Asia day and Nasdaq futures rose 1%. European futures were up 1% and FTSE futures climbed 0.8%.

Japan's Nikkei jumped 2.3% and stock markets in Australia and Indonesia hit record highs, while bets that stimulus was on the way in China drove down Chinese bond yields and sent Hong Kong and mainland equity indexes up.

The Fed lowered its window for the benchmark policy rate by 50 basis points to 4.75%-5%, where traders had been leaning before the decision. The dollar first fell broadly, hitting a two-and-a-half-year low on sterling, but then recoiled sharply.

"The key was never going to be about 25 or 50, it's all about the path forward and I think they've outlined a view where the economy is still doing pretty well," said BNZ strategist Jason Wong in Wellington.

"This wasn't a panicked 50 (bp) cut."

The dollar was last well off lows on the euro at $1.1127 and steady around 142.70 yen, after climbing as high as 143.95.

Ten-year Treasury yields have climbed nearly eight basis points from a day earlier to 3.719%, and gold shot to a record high just shy of $2,600 an ounce, before easing back to steady at $2,559.

Policymakers adjusted their median rates projection downwards, bringing them more or less in line with market expectations, but Chair Jerome Powell emphasised flexibility.

"I do not think that anyone should look at this and say, oh, this is the new pace," Powell told reporters after the outsized cut was announced.

"We're recalibrating policy down over time to a more neutral level. And we're moving at the pace that we think is appropriate, given developments in the economy."

CHINA RALLY

The focus flicks next to the Bank of England, where sticky services inflation had traders further reducing chances of a cut. Markets are priced for rates to stay at 5%, with a 19% risk of a 25-basis-point cut.

Elsewhere in Asia, growing expectation of policy easing drove down Chinese bond yields and lifted the CSI300 blue chip index by 0.7%, with liquor and property stocks leading gains. Hong Kong's Hang Seng jumped 1.9%.

China's yuan hit a 16-month high of 7.0640 per dollar. China is widely expected to trim its main policy and benchmark lending rates on Friday, a Reuters poll showed.

MSCI's broadest index of Asia-Pacific shares outside Japan climbed 1% to a three-week high. One dampener was South Korea returning from a holiday with heavy selling in chipmakers, after a downbeat Morgan Stanley note that halved SK Hynix's (HXSCF) target price. SK Hynix (HXSCF) shares tumbled 6% and Samsung fell 1.6%.

Oil prices were also under pressure and benchmark Brent crude futures hovered around $73.87 a barrel.

Around the world lower U.S. rates in theory give emerging markets leeway to cut their policy rates to support growth. Bank Indonesia moved a few hours before the Fed, with a 25-basis-point cut on Wednesday.

The Bank of Japan rounds out a big week for global policy settings and is expected to stand pat on Friday while lining up future hikes, perhaps as soon as October.

(Reporting by Tom Westbrook; Editing by Shri Navaratnam, Edwina Gibbs and Tom Hogue)