TOKYO: 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 shed 0.2 per cent and South Korean and Australian shares posted similar losses.
MSCI’s broadest index of Asia-Pacific shares outside Japan was little changed after rallying 1.3 per cent 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.
“Crude oil is falling again and if U.S. equities remain unstable amid differing prospects for a Fed rate hike, it will weigh on global equities,” said Junichi Ishikawa, market analyst at IG Securities in Tokyo.
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 signalled a more cautious outlook for U.S. growth, cooling speculation for tightening in June.
