Asian Equities Lower as Fed Rally Peters Out

Asian stocks slipped on Friday as Federal Reserve-inspired gains petered out, while the dollar steadied after rebounding from the shock of a surprisingly dovish U.S. central bank.  Japan’s Nikkei .N225 shed 0.2 percent and South Korean and Australian shares posted similar losses.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was little changed after rallying 1.3 percent the previous day.  U.S. shares fell overnight as the dollar’s rebound weighed on oil and other commodity prices, sending energy and material sectors lower. [.N]

The dollar tumbled across the board, risky assets surged and U.S. debt yields sank after the Fed on Wednesday opened the door further for an interest rate hike but signaled a more cautious outlook for U.S. growth, cooling speculation for tightening in June.  The dollar was little changed at 120.79 yen JPY= after sinking to the week’s low of 119.29 after the Fed’s statement.

Reuters

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