(Clarifies Goldman Sachs forecast refers to output in paragraph 11)
* Asian stock markets : https://tmsnrt.rs/2zpUAr4
* S&P 500 futures bounce in Asia, Nikkei jumps
* Investors relieved as Fed pledge eases bond market stress
* Dollar off peaks on promise of bottomless liquidity
* Factory surveys to show extent of economic damage
By Wayne Cole
SYDNEY, March 24 (Reuters) - Asian stocks rebounded sharply on Tuesday as the U.S. Federal Reserve's promise of bottomless dollar funding eased painful strains in financial markets, even if it could not soften the immediate economic hit of the coronavirus.
While Wall Street seemed unimpressed, investors in Asia were encouraged enough to lift E-Mini futures for the S&P 500 by 3% and Japan's Nikkei 6.2%. If sustained it would be the biggest daily rise for the Nikkei since late 2016.
MSCI's broadest index of Asia-Pacific shares outside Japan jumped 4.2%, to more than halve Monday's drop. Shanghai blue chips gained 2.7%.
Europe also looked a shade brighter as EUROSTOXXX 50 futures climbed 3.3% and FTSE futures 3.1%.
In its latest drastic step, the Fed offered to buy unlimited amounts of assets to steady markets and expanded its mandate to corporate and muni bonds.
The numbers were certainly large, with analysts estimating the package could make $4 trillion or more in loans to non-financial firms.
"This open-ended and massively stepped-up programme of QE is a very clear signal that the Fed will do all that is needed to maintain the integrity and liquidity of the Treasury market, key asset-backed markets and other core markets," said David de Garis, a director of economics at NAB.
The Fed's package helped calm nerves in bond markets where yields on two-year Treasuries hit their lowest since 2013, while 10-year yields dropped back to 0.79%.
Analysts cautioned it would do little to offset the near-term economic damage done by mass lockdowns and layoffs.
Speculation is mounting data due on Thursday will show U.S. jobless claims rose an eye-watering 1 million last week, with forecasts ranging as high as 4 million.
Goldman Sachs warned the U.S. economy growth could contract by 24% in the second quarter, two-and-a-half times the pace of the previous postwar record.
A range of flash surveys on European and U.S. manufacturing for March are due later on Tuesday and are expected to show deep declines into recessionary territory.
Surveys from Japan showed its services sector shrank at the fastest pace on record in March and factory activity at the quickest in about a decade.