By Ankur Banerjee

SINGAPORE, Nov 10 (Reuters) - Asian stocks fell to their lowest in a week on Friday, while the dollar was firm as elevated Treasury yields weighed on sentiment after hawkish comments from U.S. Fed Chair Jerome Powell extinguished expectations of a peak in interest rates.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 1% to a one-week low of 486.39, while Japan's Nikkei was 0.50% lower.

U.S. Federal Reserve officials including Powell said on Thursday they are still not sure interest rates are high enough to finish the battle with inflation.

The Fed is "committed to ... monetary policy that is sufficiently restrictive to bring inflation down to 2% over time," Powell said at an International Monetary Fund event.

"We are not confident that we have achieved such a stance."

Powell's comments along with a weak auction of $24 billion in 30-year Treasuries pushed yields higher, casting a shadow on equities and providing support to the dollar.

"There is no point in corralling the market into expecting cuts until shortly before they look necessary," said Rob Carnell, Asia-Pacific head of research at ING.

Investors have been looking for signs of U.S. interest rates peaking after the Fed held rates steady last week, a move that bolstered speculation that the rate hiking cycle was over, leading to a short-lived rally in risky assets.

Carnell said the Fed needs to keep rates and bond yields reasonably high to achieve the tighter financial conditions that will bring about lower inflation and enable the Fed to ultimately cut rates.

"That rhetoric has to continue, 'we're not definitely finished, there's still a chance of more' ... (you) do that right up until the day before you cut," he said.

Overnight, the three major U.S. stock indices closed lower, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years as market optimism over looser monetary policy faded.

China stock eased 0.6%, while Hong Kong's Hang Seng Index was 1.6% lower as worries over the world's second-biggest economy resurfaced after data on Thursday showed consumer prices dipped back into contraction.

Tapas Strickland, head of market economics at NAB, said the data keeps the pressure on Beijing to continue with its incremental easing in monetary and fiscal policy.

The yield on 10-year Treasury notes eased 1 basis point to 4.620% in Asian hours, having risen 10.7 bps overnight. The yield on the 30-year Treasury bond fell 2.1 basis points to 4.746% after rising 12.1 bps overnight.