* MSCI ACWI hits previous session's record high

* Powell reiterates inflation spike will be transitory

* RBNZ stimulus reduction surprise jolts Kiwi dollar higher

By Herbert Lash and Carolyn Cohn

NEW YORK/LONDON, July 14 (Reuters) - A gauge of global stocks prices rose on Wednesday and bond yields edged lower after U.S. Federal Reserve Chair Jerome Powell reassured investors an inflation spike will be transitory, although it may linger for awhile.

Powell reiterated in prepared congressional testimony that inflation will remain anchored around the Fed's 2% target and the U.S. economy was "still a ways off" from levels the Fed wanted to see before tapering its stimulus support.

Powell's prepared remarks relieved investors who were concerned inflation data would prompt him to signal the beginning of tapering, said Michael Arone, chief investment strategist at State Street Global Advisors in Boston. He noted that U.S. producer prices surged in June to the largest annual gain in more than 10-1/2 years.

"Both the CPI yesterday and the PPI today came in considerably above expectations and signaled that inflation continues to run hot," he said. "Even in the face of that Powell has stood steadfast."

The yield on the 10-year Treasury note slid 5.1 basis points to 1.3643%, the dollar eased and stocks on Wall Street opened higher.

MSCI's all-country world index rose 0.2% after matching Tuesday's record intra-day high of 728.77. The broad pan-European FTSEurofirst 300 index slid 0.06% and other equity indices in Europe were also lower.

On Wall Street, the Dow Jones Industrial Average rose 0.27%, the S&P 500 added 0.39% and the Nasdaq Composite advanced 0.52%.

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.25% as Chinese blue-chips fell 1.15%. Japan's Nikkei dipped 0.38%.

The Bank of Canada held its key overnight interest rate at a record low 0.25% as expected on Wednesday and said it would cut its weekly net purchases of government bonds to a target of C$2 billion ($1.6 billion) from C$3 billion.

The Canadian dollar edged lower to 1.2499 per U.S. dollar.

The New Zealand dollar shot up 0.92% as markets bet an interest rate hike is imminent after the central bank on Wednesday unexpectedly announced it would end its bond purchase program from next week.

The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.414% to 92.39.

The euro was up 0.42% at $1.1824, while the yen traded down 0.56% at $109.9900.

President Joe Biden's administration is continuing to push for fiscal stimulus to boost the U.S. economy. Late on Tuesday, Democrats on the U.S. Senate Budget Committee reached an agreement on a $3.5 trillion infrastructure investment plan they aim to include in a budget resolution to be debated this summer.

German 10-year Bund yields were little changed at -0.293% after Germany sold 3.392 billion euros in a top-up of its 0.00% 10-year Bund.

Oil fell after data showed China's first-half crude imports dropped 3% from January to June versus a year earlier.

Brent crude was down $0.41 at $76.08 a barrel. U.S. crude was down $0.55 at $74.7 a barrel.

(Reporting by Herbert Lash, Additional reporting by Carolyn Cohn in London, Andrew Galbraith in Shanghai; Editing by Timothy Heritage, Mark Heinrich and David Gregorio)