Asian shares fell lower on Thursday after the U.S. Federal Reserve cut interest rates as expected but signaled more barriers to further policy easing.
Treasury yields rose and the curve flattened as Fed Chairman Jerome Powell took a cautious approach to any further reductions in borrowing costs. The 10-year Treasury rose to 1.8013%, while the 2-year yield rose to 1.7703%.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.36%. Hong Kong shares shed 0.96%, but Japan's Nikkei rose 1.01%.
The yen rose 0.3%, from a seven-week low against the dollar after the Bank of Japan kept policy on hold, as expected, but signaled it could ease next month.
Central banks around the world have been loosening policy to counter the risks of low inflation and recession. Easier monetary policy has generally supported equities.
The Australian dollar fell 0.5% after data showed the nation’s jobless rate rose slightly to 5.3%.
Investors are awaiting a Bank of England policy meeting later Thursday. The BOE is expected to keep rates unchanged.